North Carolina SB 1056: CERTIFICATE OF NEED SIMPLIFICATION

Bill Text

GENERAL ASSEMBLY OF NORTH CAROLINA
SESSION 2025
S 1
SENATE BILL 1056

Short Title: NC Small Business Capital & Jobs Act. (Public)
Sponsors: Senators Garrett, Batch, and Salvador (Primary Sponsors).
Referred to: Rules and Operations of the Senate
May 4, 2026
*S1056-v-1*
A BILL TO BE ENTITLED 1
AN ACT TO ENACT THE NC SMALL BUSINESS CAPITAL AND JOBS ACT. 2
The General Assembly of North Carolina enacts: 3
SECTION 1. Article 10 of Chapter 143B of the General Statutes is amended by 4
adding a new Part to read: 5
"Part 20A. Small Business Capital Access. 6
"§ 143B-271.113. Small Business Capital Access Act. 7
(a) Title. – This Part shall be known and may be cited as the "North Carolina Small 8
Business Capital Access Act." 9
(b) Findings. – The General Assembly finds as follows: 10
(1) Small businesses and businesses in underserved communities are vital to 11
North Carolina's economy, creating jobs and driving innovation throughout 12
the State. 13
(2) Despite their importance, these businesses face persistent barriers to accessing 14
capital necessary for startup, operation, and growth. 15
(3) Existing capital access programs have gaps that leave many qualified 16
businesses unable to secure necessary financing. 17
(4) Targeted interventions have proven successful in other states and countries in 18
addressing these capital access disparities. 19
(5) North Carolina has an opportunity to strengthen its economy by implementing 20
a coordinated strategy to expand capital access for small businesses and 21
businesses in underserved communities. 22
(c) Purpose. – The purpose of this Act is to establish a comprehensive framework to 23
expand access to capital for small businesses and businesses in underserved communities, 24
disadvantaged areas, and census tracts with persistent poverty throughout North Carolina through 25
coordinated loan guarantees, direct investment, support for community lenders, technical 26
assistance, and incentives for private investment. 27
(d) Definitions. – The following definitions apply in this Act: 28
(1) Board. – The Small Business Capital Access Oversight Board established by 29
this Act. 30
(2) CDFI. – A Community Development Financial Institution certified by the 31
U.S. Department of the Treasury. 32
(3) Department. – The North Carolina Department of Commerce. 33
(4) Fund. – The North Carolina Small Business Capital Access Fund. 34

General Assembly Of North Carolina Session 2025
Page 2 Senate Bill 1056-First Edition
(5) Growth-stage business. – A business that has established a viable product or 1
service and is seeking capital to expand operations, market reach, or product 2
offerings. 3
(6) Office. – The Office of Small Business Capital Access. 4
(7) Program. – The North Carolina Small Business Capital Access Program. 5
(8) Qualifying business. – A business located in an underserved community. 6
(9) Small business. – A business that employs fewer than 500 full-time 7
employees. 8
(10) Technical assistance. – Professional guidance provided to business owners in 9
areas including but not limited to business planning, financial management, 10
marketing, operations, technology, and accessing capital. 11
(11) Underserved community. – A census tract that is designated as a low-income 12
community according to the most recent data from the U.S. Census Bureau or 13
is located in a rural area as defined by the North Carolina Rural Center. 14
(e) Office established, duties. – There is established within the Department of Commerce 15
the Office of Small Business Capital Access. The Office shall be headed by a Director appointed 16
by the Secretary of Commerce, who shall have substantial experience in small business financing, 17
economic development, or qualifying business support. The Office shall fulfil the following 18
duties: 19
(1) Administer all components of the North Carolina Small Business Capital 20
Access Program. 21
(2) Develop program guidelines, application procedures, and evaluation metrics. 22
(3) Coordinate with other state agencies providing services to small businesses 23
and qualifying businesses. 24
(4) Conduct outreach to ensure participation by businesses in all regions of the 25
State. 26
(5) Collect and analyze data on program outcomes. 27
(6) Submit annual reports to the General Assembly and the Governor. 28
(7) Seek additional funding through federal grants, philanthropic sources, and 29
other avenues. 30
(f) Board established, duties. – There is established the Small Business Capital Access 31
Oversight Board to provide strategic guidance for the Program by (i) reviewing and approving 32
program guidelines developed by the Office; (ii) monitoring program performance and outcomes; 33
(iii)) advising on strategic priorities and capital deployment strategies; (iv) ensuring the Program 34
reaches underserved communities and populations; (v) meeting at least quarterly; and (vi) 35
submitting annual recommendations to the Governor and General Assembly. Board members 36