E-mail marketing firm iContact, with $5 million in new funding in the bank, plans to step up its sales and marketing efforts.

North Atlantic Capital made the loan to iContact. They disclosed the deal Wednesday.

"They approached us and offered such good terms that we grabbed it," an iContact spokesperson said.

iContact also plans to expand its support team.

"We’re glad to partner with North Atlantic as we build iContact into the leading e-mail marketing firm for small businesses, non-profits, and associations,” said iContact co-founder and Chief Executive Officer Ryan Allis. “It is a true testament to our team and our company that we have been able to secure this growth capital in such a challenging investor market.”

iContact already is on a fast track for growth, having ranked 85th in the Inc. Magazine “500” for 2007. The Inc. 500 list is based on the percentage growth in a company’s revenue over a four-year period. iContact has had a 2,114.3 percent growth rate since 2003, according to the company.

“iContact’s best-of-breed product, superior marketing capability, excellent team and attractive customer economics have allowed iContact to become the fastest-growing e-mail marketing company,” said David Coit, managing director of North Atlantic Capital. “Our investment will help the company accelerate its growth and become the leader in online communications for the billions of small businesses and non-profits both in the U.S. and around the world.”

North Atlantic Capital, a 22-year-old firm, has more than $200 million under management and has invested in 65 companies.

In June of 2007, iContact raised $5.35 million in its first VC fundraising.

Updata Partners led the funding round. IDEA Fund Partners, which is based in the Triangle and is a new for-profit fund launched by NC IDEA, also participated.