A Business Microloan is a small, short-term loan designed to help startups or small businesses cover essential expenses. These loans are ideal for businesses that need a modest amount of capital for purposes like purchasing inventory, covering cash flow gaps, or launching a new service.
Business has been operating for at least six months with demonstrated income
Credit Score of 575 or Higher (some programs may accept lower scores)
Basic business documentation (business plan, tax returns, bank statements)
No active bankruptcies or recent foreclosures within the past year
Valid business licenses and permits
Personal guarantee required from owners with 20% or greater ownership
Must be located in the designated service area
Technical assistance or financial education may be required
Loan amount ranging from $5,000 to $50,000
Fixed interest rates ranging from 9.00% - 16.00%
Terms of six months to six years
Origination Fee of 1.00% - 3.00%
Documentation Fee of $100 - $250
No prepayment penalties
Monthly payments with direct debit option
Free technical assistance and business coaching included
Most recent personal tax return
Last three months of business bank statements
Simple profit and loss statement (template provided)
Basic business plan or project description
Current business licenses or permits (if applicable)
Government-issued photo ID
Proof of business ownership or DBA documentation
Brief description of how loan funds will be used
Personal budget worksheet (provided by CDFI)
Most applications are processed within 2-3 weeks from receiving all required documentation. Complex loans may take longer, while smaller loans might be processed more quickly.
Business term loans can have a variety of uses, including:
Working capital
Equipment purchases
Inventory expansion
Business expansion or renovation
Refinancing existing business debt
Hiring and training employees
While collateral may be required, we consider various forms of security including business assets, equipment, or inventory. Some loans may require only a personal guarantee.
We look beyond credit scores and consider your entire business profile, including cash flow, business performance, and future potential. We may be able to work with you if you have less-than-perfect credit.
No, you can pay off your loan early without any prepayment penalties.
Monthly payments are fixed and include principal and interest. The amount depends on your loan size, interest rate, and term length. We’ll provide a detailed payment schedule before closing. You can also check out the Loan Calculator provided under Business Resources.
Once approved and documents are signed, funds are typically disbursed directly to your business bank account within 1-2 business days.
We require annual financial statements, tax returns, and may conduct periodic check-ins to support your business success. Specific requirements vary based on loan size.