Loan Amount

Minimum: $3000
Maximum: $35,000

Interest Rates

• Priced for risk, based on
current market conditions
• Generally range from Prime
plus 1 to Prime minus 1
• 5% Floor

Terms

12 to 70 months

Collateral

1st or 2nd deed of trust and/or assets being financed; up to 100% loan to asset value

Closing Costs

$100-$550 depending on transaction size

Late Payment Fees

$25 after the 10th day

Prepayment Penalty

None

Guarantees

Principals, partners, majority investors.

Micro Loan Product Sheet

Micro loans provide business financing up to $35,000 to new or existing businesses in Pulaski County. Businesses owned by or that create jobs for low to moderate- income individuals are of particular interest.

Eligibility

• Be a US citizen or permanent resident alien and 18 years of age.
• Plan to locate or already operate a business in Pulaski county.
• Be a micro enterprise (requiring less than $35,000 in start up cost) or a small
business (employing 10 or less people).
• Demonstrated ability to repay the interest and principle through a realistic
business plan.
• Unable to obtain a loan from a traditional lender

Loan Uses

• Seed capital
• Working capital
• Purchase of inventory or equipment
• Expansion capital
• Building renovation (must own the building)
• Real estate (rental property ineligible)
• Business debt refinancing (special cases only)

Borrower Characteristics

• Financially stable and capable of fulfilling repayment terms
• Tangible assets which can be pledged as collateral against the loan
• Credit worthiness - a bad credit history is not a reason to deny the loan unless
the borrower has not taken steps or is unwilling to repair credit
• Industry related capacity and capability based on experience and education
• Character - the business personality to function comfortably in the marketplace

Other Conditions

• Loan fund provides for 50% of the total financial package.
• Borrower must provide 10% equity and 40% from another source.
• Projects which create jobs for low-moderate-income earners are desired
• 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