There have been a few misconceptions about Carrboro’s Revolving Loan Fund floating around recently. I would like to clear them up.

In June of 1985 the NC Dept of Natural Resources and Community Development gave Carrboro the right to use program income from the repayment of principal and interest from 3 economic development loans made to businesses in Carrboro to start the Carrboro Revolving Loan Fund. The loan proceeds from the three loans totaled $275,000. To date no local tax dollars have been added to this fund, all funds have accrued from the principal and interest from the repayment of the original three loans. There is also some additional interest accrued on the repayment amounts added to the fund from the investment of the repayment dollars. The three original businesses are still operating and employing people.

Over a period of 21 years the Town of Carrboro has loaned money to 33 businesses. Weaver St Market, the first to receive a loan has expanded once in it’s original location and has since expanded to Southern Village and soon to Hillsborough. It is a major employer.

After making 33 loans and helping many town businesses get started, the current balance available to loan is $480,000. Since the loan started there has only been one foreclosure for the which the town obtained collateral and the proceeds will go back to the RLF.

The town just completed a three day new business start up program for 30 citizens. Participants received sufficient training by the Small Business Technology Development Center to compete for a Carrboro loan if they meet the criteria.

Over a twenty year period 19 of the 33 businesses or 58% that received a loan are still in business. A significant improvement over the national average of 44% of new businesses that survive the first four years.

The businesses that have received loans from the RLF include:

Weaver St Market-a key part of the revitalization of downtown and a key employer

Cat’s Cradle-a regional leader in the music world

The Acme-recognized by many food journals and Southern Living as one of the best restaurants in region

The Ink Spot

Star Child

Paper Pen and Ink

Mill Town

The Orange County Social Club

and many many others

Having been here for over 31 years I can say without exaggeration that the RLF has changed the face of Carrboro and set the stage for our next economic step forward. The businesses made possible by the RLF have created a vibrant town. When the Main St project and others come online in next few years, and help ease the residential tax burden, they will be building on the economic and yes cultural foundation set by businesses like the Cradle, Acme, The Music Loft and many others.

Hey, for a fund that has not used local tax dollars and has managed to grow $275,000 into $480,407 that ain’t too shabby! Maybe that is why other small towns want to know how we did it.