Loan Amount
Minimum: $300
Maximum: $3,000

Interest Rates
• Priced for risk, based on
current market conditions
• Generally 12% - 15%

Terms
6 to 12 months

Collateral

Traditional not required. Nontraditional
accepted (furniture,
appliances, personal items)

Closing Costs
$100

Late Payment Fees
5% up to a maximum of $100 by the 10th day

Prepayment Penalty
none

Guarantees
Not required

 

Micro Credit Product Sheet

Microcredit provides a line of credit for existing Pulaski County businesses or startups that cannot get credit elsewhere. Eligibility is restricted to borrowers with annual household income at or below 80% of area median income.

Eligibility

Borrowers interested in microcredit loans do not necessarily need:
• A current bank account
• Credit history
• Traditional collateral
• Personal guarantors

Borrowers must:
• Be a U.S. citizen or permanent resident alien at least 18 years of age
• Be a permanent resident of Pulaski County
• Be a low-to-moderate income (LMI) household (see brochure for 5 or more)

Household size Maximum Annual Household Income
1 $32,200
2 $36,800
3 $41,400
4 $46,000

Loan Uses

Equipment and supplies related to an income generating business.

Borrower Characteristics

• Willingness to work on credit issues and change personal spending behaviors
• Industry related capacity and capability based on experience and education
• Character - the business personality to function comfortably in the marketplace

Other Conditions

• Open a personal savings account with a minimum initial $10 deposit and make
weekly deposits of a small, fixed amount determined by the group
• Work in peer group to clean up any bad credit prior to becoming loan eligible
• Agree to follow Micro Solutions’ Tenants
• A contingency plan to repay the loan if projected sales are not achieved
• Monthly and/or quarterly financial and progress reporting required
• Employee surveys to verify low-moderate-income job creation
• Capital disbursed using third party payee system