Micro Enterprise BUSINESS LOAN PROGRAM

Application

PROGRAM OBJECTIVE

For Loans not to Exceed $7,500                                                                                                        

This program is designed to provide access to small businesses and start-ups. It is a streamlined, low barrier program designed to provide access to capital for businesses not traditionally bankable. There will be no minimum credit score required but applicants must have no delinquent or outstanding derogatory accounts reported.

Eligible applicants will be businesses with a majority ownership qualifying as 80% Low-to-Moderate income using the most recent HUD income qualification tables. Ownership structures will include:

  • Sole Proprietors
  • Partnerships
  • LLCs
  • Corporations

Loans will be secured by a Personal guaranteed from business owners and a UCC Filing on all business assets.

Allowable uses include:

  • Working Capital
  • Inventory & Equipment

Applications will include:

  • A completed application form
  • A completed intake form from all owners
  • 1 form of Identification for each owner
  • 1 year business tax returns and/or 1 year personal tax return and 3 bank statements
  • Documentation of collateral

Approval will be based on:

  • No-Credit-Elsewhere assessment as approved by HUD
  • Owners below 80% LMI
  • Credit check demonstrating no outstanding delinquencies

Loan Terms well be a fixed rate 2% loan amortized over 3 years.

Applications can be submitted to the Community Development Office at CDBG@AuburnMaine.gov