RALEIGH, N.C. – State officials this week said they will provide $6.5 million through the N.C. Small Business Assistance Fund to insure small business loans to be made by Self-Help CU.
The $6.5 million in insurance, which includes $5 million from the North Carolina Golden LEAF Foundation and $1.5 million from the legislature, will encourage Self-Help to lend money to small businesses that might not otherwise qualify to borrow.
The $6.5 million provides an insurance fund to cover defaults, said Dan Gerlach, president of the Golden LEAF Foundation. "This enables them to take some of those loans that might be at the edge, might give them enough confidence to take the loan," he said.
The credit union agreed to leverage the $6.5 million to lend as much at $32.5 million.
