What is a Microloan?
A microloan is a small loan offered to a small business that is unable to access capital from a traditional lender such as a bank. A microloan is not a grant, in fact, when a loan is repaid those funds are used to assist the next small business.
What is the process?
We believe your credit score is your greatest asset. We take each individual through one-on-one credit education and credit building as part of the loan application process. Once all requirements are met and all documentation is received, your loan closes within 5-10 days.
Who qualifies for a loan?
[list] [list_item size=”large” icon=”icon-ok” hex_color=”1a7003″]Anyone over the age of 18[/list_item] [list_item size=”large” icon=”icon-ok” hex_color=”1a7003″]Start-ups, existing, and home-based businesses[/list_item] [list_item size=”large” icon=”icon-ok” hex_color=”1a7003″]Denied by a bank (if applicable)[/list_item] [/list]
What are the terms of a Microloan?
[list] [list_item size=”large” icon=”icon-ok” hex_color=”1a7003″]Size: $500-50,000 (average is $8,000)[/list_item] [list_item size=”large” icon=”icon-ok” hex_color=”1a7003″]Repayment: Up to 72 months[/list_item] [list_item size=”large” icon=”icon-ok” hex_color=”1a7003″]Interest Rate: 7.75-12%[/list_item] [/list]
How can I use the loan?
You can use the loan for working capital, inventory, equipment and furniture/fixtures. The microloan cannot be used for owner’s salary/draw or real estate purchase.
What documents are required?
[list]
[list_item size=”large” icon=”icon-ok” hex_color=”1a7003″]Photo ID[/list_item]
[list_item size=”large” icon=”icon-ok” hex_color=”1a7003″]Proof of residence (utility bill or other official document)[/list_item]
[list_item size=”large” icon=”icon-ok” hex_color=”1a7003″]Proof of insurance (if applicable)[/list_item]
[list_item size=”large” icon=”icon-ok” hex_color=”1a7003″]Proof of income (W-2’s, social security, disability, bank statements)[/list_item]
[list_item size=”large” icon=”icon-ok” hex_color=”1a7003″]Use of loan proceeds[/list_item]
[list_item size=”large” icon=”icon-ok” hex_color=”1a7003″]Business Plan or Business Plan Questionnaire (provided at request)[/list_item]
[list_item size=”large” icon=”icon-ok” hex_color=”1a7003″]2 personal references[/list_item]
[list_item size=”large” icon=”icon-ok” hex_color=”1a7003″]3 months of recent bank statements (if available)[/list_item]
[list_item size=”large” icon=”icon-ok” hex_color=”1a7003″]2 years of tax returns, preferred (most recent)[/list_item]
[list_item size=”large” icon=”icon-ok” hex_color=”1a7003″]Recent business financial statements (if applicable) or projections[/list_item]
[list_item size=”large” icon=”icon-ok” hex_color=”1a7003″]Proof of insurance (if applicable)[/list_item]
[/list]
What about collateral?
Each loan is looked at individually. We will consider available collateral as well as other options, like a co-signer.
Do I need a bank account?
Yes. We use ACH (automatic debit) to repay your loan. If you do not have a bank account, we can connect you with a local financial institution.
Who do I contact?
Lisa Zimmerman, Small Business Counselor
816-210-7672 lzimmerman@justinepetersen.org
www.justinepetersen.org