Microenterprise Loans
ECDI can offer you capital between $1,000 to $35,000 to start or expand a small business.
The Microenterprise Loan Program provides very small loans to start-up, newly established, or growing small business. Under this program, ECDI makes loans to eligible borrowers in Central Ohio in amounts of $1,000 to $35,000.
*Certain restrictions apply and are subject to change. Upon the completion of the ECDI general application form and the submission of all required information to an ECDI staff member, you will be required to submit a non-refundable $25 application fee (in cash, check, credit card or money order) to enroll in the ECDI Microenterprise Microloan program.
Lending Overview
This program is intended to provide financing to borrowers who do not qualify for traditional financing, including low- to moderate-income households and borrowers with insufficient credit history. Retail, service and manufacturing businesses employing up to 5 full-time employees, including the owner and located in Franklin, Licking, Delaware, Madison, Fairfield, Union or Mahoning County are eligible to apply.
All loans have fixed interest rates and maturity up to 60 months. Rates and terms depend mostly on the risk, size, and profitability of the business.
Eligible uses of loan proceeds include expansion of existing businesses, establishment of new businesses, job creation and/or retention, purchase of equipment, machinery, supplies or inventory, start‑up operating costs and working capital. Intended uses of funds have to be included and documented in the loan application.
Applicants are required to submit a complete business plan, including at least two years of cash flow projections and a projected profit and loss statement. Applicants without documented business education or experience are required to complete microenterprise training offered by ECDI or other established institution. Personal financial statements, income tax returns and other information that document the applicants' ability to repay the loan are required from all applicants.
All existing businesses are also required to provide at least one year of actual financials in addition to the projections; additional historical documentation may be required from businesses with more than one year of operations on an individual basis.
ECDI currently offers loans funded by the following sources.
- The business has to be located in the City of Columbus.
- Business owners have to be of low- to moderate-income per HUD income guidelines.
- Business has to be located in Franklin County outside of the City of Columbus.
- Business owners have to be of low- to moderate-income per HUD income guidelines.
U. S. Office of Refugee Resettlement
- Business owner has to a refugee or asylee.
- Business has to be located in Central Ohio.
U. S. Office of Community Services
- Business has to create and retain jobs for low-income individuals
- Business has to be located in Franklin County or one of the contiguous counties
U. S. Small Business Administration
- Business has to be located in Franklin County or one of the contiguous counties
Additional Information
Please contact the ECDI Lending Department for more information.
