FAQ

NCRC CDF focuses on providing access to capital and business support services to Black, Latino, and LMI entrepreneurs nationwide. While we lend to groups outside of these focus areas, we focus our work to build wealth, reduce poverty, and lower unemployment across these communities.

Small and micro business owners are considered eligible when meeting the following criteria:

• US Citizen/US Resident
• Minimum age of 18 years old
• Minimum personal FICO for each applicant of 580 or above
• No SSBS score minimum
• For-profit businesses such as single or multi-member LLC, C-Corp, S-Corp
• Registered and in good standing with the Secretary of State
• Startup businesses are eligible
• Criminal convictions are not disqualifying 
• Small business owners, with focus on LMI, African American, Hispanic/Latino, Women and LGBTQ+ entrepreneurs
• No bankruptcy within the past year
• For loans funded with SBA (or similar government loan programs), borrower must meet SBA eligibility requirements and loan guidelines
• Borrower has not received NCRC CDF loan within the past one year

Small and micro business loans are not exclusive to any specific types of industries or businesses, however, NCRC CDF does not fund enterprises or efforts associated with firearms, tobacco, illegal activities or other activities which conflict with its public purpose.

Loans provided to small businesses seeking financing for NCRC CDF eligible business purposes fall within these amounts

• Micro-loans of $5,000 to $50,000
• Small-business loans over $50,001 and less than $500,000

NCRC CDF provides loans to approved borrowers for the purpose of financing the following eligible loan purposes: 

1. Working Capital
2. Inventory
3. Commercial Real Estate
4. Leasehold Improvements
5. Machinery and Equipment
6. Commercial Furniture and Fixtures
7. Commercial Vehicles
8. Purchase of a business or business franchise
9. Cannabis-related businesses are allowed, subject to determination that the business may be legally operated within the particular state, county, or municipality in which it is doing or intends to do business
10. Debt refinancing or restructuring
11. Other loan proceeds may be used at the discretion of the ED, with subsequent reporting to the Loan Committee and Board.

A monthly payment of interest only based on the interest rate applied to the principal balance divided by the loan term. The last payment is a “balloon” payment for the entire outstanding principal. This product is only available on loans of $50,000 or less when a specific, one-time source of income and/or cash repayment is available to the Borrower. The repayment source must be appropriately documented during the loan underwriting process. This interest only, single-principal payment loan structure is to be approved by the NCRC CDF Executive Director.

Borrowers who have received a loan within the past year are not eligible to receive new funding from NCRC CDF.

Personal guarantees are required on all business loans from individuals with 20% or more ownership of the business. The personal guarantor accepts personal liability in the event that the borrower (the business) is not able to satisfactorily meet the repayment obligations and conditions of the loan.

To be eligible for a loan, all business owners with 20% or more ownership of the business must have at least a 580 credit score.

Our loan process timeline is dependent on communication and thoroughness of documents that the applicant may share. Typically we have a timeline of 5-6 weeks to close our loans but this can be lengthened depending on if there is additional information needed.

There are no fees to apply for a loan from NCRC CDF.

We are able to lock in your conditional approval for up to 90 days after you apply. After 90 days, we ask that you re-apply for a loan.

To ensure that the borrower meets our credit score requirement (minimum score of 580), we will conduct a hard credit check after the applicant gives us authorization by signing our Borrower Authorization Form.

The following information is to be requested from the loan applicant:

1. Government Issued ID: Driver License or Passport for all firm owners with a 20% or greater ownership share in the firm.
2. Utility Bill: For the firm with a name of a principal for whom we’ve been provided a government issued ID.
3. SSN: For all firm owners with a 20% or greater ownership share in the firm.
4. EIN: For the firm corporate entity.
5. Business Debt Worksheet: Detailing all debts owed by the firm.
6. Management Bios: Your own formatted document outlining the bios and experiences of all of the individuals with a 20% or greater ownership share in the firm.
7. Business Taxes: Previous 3 years business taxes for the firm
8. Personal Taxes: Previous 3 years personal taxes for all owners with a 20% or greater ownership share in the firm.
9. Financials: Previous 3 years and Interim/YTD Cash Flow, P&L, Balance Sheet
10. Business Bank Statements: Previous 3 months for the business bank account
11. If the borrower is a startup or in business less than three years, then include cash flow projections for the next three years 
12. Personal Bank Statements: Previous 3 months for all individuals with a 20% or greater ownership share in the firm.
13. Incorporation Documents: Articles of Incorporation for the firm entity
14. Business Plan: Your own formatted document outlining your business plan and how the requested amount of funding will be used. Should include a reference for how the business will cover any shortfall if it is not approved for the full amount of the requested funding.
15. Borrower Authorization Form: Permitting us to pull credit reports – from all individuals with a 20% or greater ownership share in the firm.
16. Collateral: For loans above $50,000, a description of the collateral available to secure the loan is needed which may include: business assets (accounts receivable, inventory, furniture, fixtures, machinery,and equipment), vehicles, and/or real estate.
17. Appraisal: Underwriter must obtain an independent appraisal of the property to determine the market value of the property
18. Review Title Policy and Insurance: Underwriter will review the Title Policy submitted to ensure accuracy.

Yes, during the underwriting process we will provide you with a link so that you are able to upload needed documents conveniently.

From time-to-time borrowers may face circumstances out of the business’ control that result in loan delinquency. NCRC CDF will work with a borrower as long as the borrower makes a sincere effort and demonstrates continued commitment to perform under the loan agreement.