The business lending sources managed by MCEDD have developed the following Microlending Terms to support lending requests for loans up to $40,000. We are here to support your request for funding in a simpler, easier-to-access process!
- Eligible Applicant Types: Entrepreneurs, new business start-ups, expanding businesses, existing businesses for debt refinancing, and most legal business ventures. Women and minority-owned businesses are encouraged to apply.
- Term: Depending on the MCEDD-managed funding source one- to five-year terms are available.
- Interest Rate: Dependent on risk criteria, generally 8-12% with performance incentives to lower the interest rate during the loan term.
- Collateral: Personal guarantee required. A token piece of collateral is required but not full collateralization.
- Flexibility in Loan Requirements: Minimum 5% applicant funds, with up to 95% loan from MCEDD-managed funding source.
- Minimal Documentation: Simple application, credit report, references and minimal supporting documentation dependent on credit score. No minimum credit score required.
- Minimal Insurance Requirements: Basic insurance on collateral and business required.