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. 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:
City of
Columbus
o
The
business has to be located in the City of Columbus
o
Business
owners have to be of low- to moderate-income per HUD income guidelines
Franklin County
o
Business
has to be located in Franklin County outside of the City of Columbus
o
Business
owners have to be of low- to moderate-income per HUD income guidelines
U. S. Office of Refugee
Resettlement
o
Business
owner has to a refugee or asylee
o
Business
has to be located in Central Ohio
U. S. Office of Community
Services
o
Business
has to create and retain jobs for low-income individuals
o
Business
has to be located in Franklin County or one of the contiguous counties
U. S. Small Business Administration
o
Business
has to be located in Franklin County or one of the contiguous counties
Please contact
the ECDI Lending Department for more
information.
