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North Carolina Rural Venture Fund: Supporting Small Business Growth

The Rural Venture Fund provides capital to small, profitable businesses in economically distressed counties, prioritizing job creation. With flexible funding options and technical assistance, it helps existing businesses thrive. Supported by various partners and structured committees, the Fund offers convertible subordinated mortgage bonds with outreach sessions across Tier 1 locations. Contacts: Don Stewart, Ashley Crane. (Word count: 65)

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North Carolina Rural Venture Fund: Supporting Small Business Growth

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  1. Rural Venture Fund … Purpose To provide needed capital to an existing un-served market of small, growing, profitable North Carolina businesses with future job creation potential. The Fund will fill a gap that is not met by other organizations in the commercial banks, intermediary lending, venture capital or angel fund field.

  2. Rural Venture Fund … • Funding: • N.C. Rural Center : $2,500,000 • GoldenLEAF: $ 500,000 • N.C. General Assembly: $3,800,000 Total Capital: $6,800,000 • UNC System: $75,000 (Technical Assistance)

  3. Rural Venture Fund … • Elements: • New source of equity-like capital for existing businesses • Priority given to businesses in Tier 1, economically distressed counties • Options range from subordinated debt to equity deals • Terms of ROI less demanding; 5-10 yr plans • Range from $50,000 to $350,000

  4. Rural Venture Fund … • Elements, cont’d: • Existing businesses only; no start-ups • Job growth potential required • Fund will collaborate with SBTDC and UNC School System for intake and due diligence • Businesses agree to tailor-made package of technical assistance as recommended by SBTDC staff. • Packaging tranches from different funding sources

  5. Rural Venture Fund…

  6. Rural Venture Fund … • University Partners: • Western Carolina University • Appalachian State University • N.C. A & T University • N.C. Central University • N.C. State University • UNC Pembroke • East Carolina University

  7. Rural Venture Fund … • Fund Structure: • Two Advisory Groups • RVF Advisory Board - consists of 7 individuals - meets as needed to discuss Fund progress • RVF Investment Committee - consists of 7 individuals - meets quarterly, or as needed, to review due diligence and make deal recommendations • Investment decisions made by Rural Center President and VP of Rural Development Programs

  8. Rural Venture Fund … • Deal Structure Scenario: • Convertible Subordinated Mortgage Bonds • 5 year interest only payments • Junior collateralization position • Ability to convert debt to equity after specified time period

  9. Rural Venture Fund … • Outreach & Marketing: • Statewide regional sessions in operation • Sessions strategically located within Tier 1 “clusters” • Collaboration with NCIF of The Conservation Fund • Collaboration with SBTDCs

  10. Rural Venture Fund … • Contacts: • Don Stewart, Director Cell: 919-605-5210 dstewart@ncruralcenter.org • Ashley Crane, Coordinator Office: 919-250-4314 acrane@ncruralcenter.org

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