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 |
