Entrepreneurs seeking to set up child-care centers in the Baltimore area are among those eligible for below-market-rate loans from NCNB Corp., the bank holding company announced yesterday.
"We think that all the communities we serve, including the Baltimore area, have a child-care shortage," said Chris Spencer, a spokesman for NCNB, which is based in Charlotte, N.C.
To meet the need and also to reach out to entrepreneurs as a business opportunity, NCNB is making available $10 million in loan funds through the special program.
NCNB is due to merge with C&S/Sovran Corp., based in Norfolk, Va., and Atlanta, at the end of this year to create NationsBank. After that, the child-care lending program will be expanded to communities throughout the Southeast, Mr. Spencer said.
Financing will be available for terms as long as 15 years. Pricing on the loans will be at the U.S. Treasury bond rate for similar maturities plus one-half percent. For example, the rate for a permanent 15-year loan closed on Sept. 30 would have been 8.37 percent.
Interim construction loans, if required, will be priced at NCNB's prime rate.
Loan seekers must meet state licensing requirements and Small Business Administration eligibility guidelines. Applicants also must be residents of the states served by the fund, or be partnerships or corporations based in those states.
In addition, loan seekers may not own more than three day-care facilities, may not be part of a franchise and must be open to the general public. According to an NCNB statement, the child-care fund is not designed to fund in-home child-care facilities or for child-care centers used primarily by one organization.
Entrepreneurs can call (800) 955-6262 for more information.