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MICRO ENTERPRISE PROGRAM

PURPOSE: Region 9’s Micro Enterprise Program is assists small businesses with short-term (up to 5-years) capital needs of less than $100,000. Technical assistance grants of $5000 maximum (dependent on loan size) are also available in conjunction with a Micro-Enterprise Loan. Applicants with loan requests greater than $100,000 are encouraged to apply for Region 9’s Business Loan Fund program.

HOW DOES THE PROGRAM WORK?

Application is made directly to Region 9. The applicant will meet with a loan officer to determine the appropriateness of the loan. A loan committee, comprised of business people representing the five county region, make the final decision.

WHO QUALIFIES:

Eligible business must be:
- Located in the five county region.
- Applying for loans of $100,000 or less.
- Able to show good credit and personal history.
- Business must have 5 or fewer employees at the time of application.
- The owner must qualify as low to moderate income or a low to moderate income job must be created.

The Micro Enterprise Program will focus on the character, credit, experience and reliability of the applicant. The primary considerations are:
- The likelihood that expected cash flow will be sufficient to pay obligations.
- The business has a good chance of achieving success with the requested financing.
- Willingness to pay debts, as indicated by a good credit history.

WHAT CAN I USE THE LOAN FOR:

Loan funds can be used for normal business uses such as working capital, equipment and inventory purchases. Loan funds may also be used to refinance credit card debt if the debt is related to business activities.

WHAT CAN I USE TECHNICAL ASSISTANCE FOR:

Technical assistance can be used for most professional help including, accounting, marketing, legal, etc. The amount of technical assistance will be reviewed with the borrower and will depend on the facts and circumstances of the business. All technical assistance will require a dollar for dollar match by the applicant.

CLOSING COST:

A loan origination fee of the greater of $100.00 or 2% of loan amount will be charged at closing.

INTEREST RATES AND TERMS:

The interest rate may vary on a case by case basis, but generally will be one to two percent above the Wall Street Journal Prime.

COLLATERAL:

Collateral will be required but is not always a primary consideration for loan approval.

QUESTIONS:

Other questions and concerns can be directed to:
                Jenny Stollar
                Region 9 Economic Development District of Southwest Colorado, Inc.
                295A Girard
                Durango, Colorado 81303
                (970) 247-9621 (970) 247-9513 (fax)
                e-mail: jenny@scan.org