COVID-19 Assistance:
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Offering reduced monthly payments on outstanding small business and consumer loans for the next 6 months.
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Offering deferments on loans originated from specific loan funds for the next 6 months.
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Offering workout payment plans for SBA Community Advantage and USDA loans.
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Connecting borrowers to seasoned professionals for pro-bono technical assistance.
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Offering unabated support, attention and stewardship to each and every client.
Overview:
Goal of a microloan program is not just to make loans, but to ultimately make a client bankable by traditional methods.
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Amounts between $500 and $50,000. Average loan amount $8,000.
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Targeted toward those who have been turned down by a bank for a traditional loan and who cannot self-finance/friends and family finance.
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Interest rates between 7.5 – 12%, terms up to 72 months.
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Have tangible collateral equal to the value of their loan request (which could include a co-signer).
Criteria for a loan ready client: (must have most but not all of these)
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Can be an existing business or a start-up.
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Have an existing business plan or feasibility plan or answer the loan readiness questionnaire which includes a review of expenses and projections of revenue. Business plan doesn’t have to be extensive. The larger the loan the more extensive the plan needs to be.
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Have a current and documented stream of revenue (this can be wages, social security, disability, income from self-employment, etc.).
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Have an open bank account in good standing.
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Can produce tax returns for the previous two years.
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Have two professional references willing to vouch for the client.
Criteria for someone to work up to loan readiness:
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Have a business idea that you have put some thought into.
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Have a desire to improve your credit score in a fairly short period of time.
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Ultimately have the ability to meet most of the other criteria listed above.
Process:
Clients can learn more about the program in one of two ways: