The Small Business Development Center of Hampton Roads, Inc. is the service provider of first choice for the region’s small business community. By offering free, confidential one-on-one business counseling, low-cost training, research through SBDCNet and referrals to top-flight service providers, we assist in maintaining and growing this vitally important segment of the region’s economy.
The MicroLoan Program provides very small loans to start-up, newly established, or growing small business concerns. Under this program, SBA makes funds available to nonprofit community based lenders (intermediaries) which, in turn, make loans to eligible borrowers in amounts up to a maximum of $35,000. The average loan size is about $10,500. Applications are submitted to the local intermediary and all credit decisions are made on the local level.
Terms, Interest Rates and Fees:
The maximum term allowed for a microloan is six years. However, loan terms vary according to the size of the loan, the planned use of funds, the requirements of the intermediary lender, and the needs of the small business borrower. Interest rates vary, depending upon the intermediary lender and costs to the intermediary from the U.S. Treasury.
Collateral
Each intermediary lender has its own lending and credit requirements. However, business owners contemplating application for a microloan should be aware that intermediaries will generally require some type of collateral, and the personal guarantee of the business owner.
Technical Assistance
Each intermediary is required to provide business based training and technical assistance to its microborrowers. Individuals and small businesses applying for microloan financing may be required to fulfill training and/or planning requirements before a loan application is considered.
Participating Lenders:
| Center for Community Development
440 High Street Suite 204 |
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| SERVICE AREA: | Chesapeake, Hampton, Newport News, Norfolk, Portsmouth, Suffolk, and Virginia Beach |
| AREA OF OPERATION: | Hampton Roads, Virginia (Portsmouth, Norfolk, Chesapeake, Virginia Beach, Suffolk, Hampton, Newport News, and Williamsburg) |
| PURPOSE: | To make funding business training and technical assistance available to low to moderate income citizenry of Hampton Roads who would not otherwise qualify for conventional business loans. |
| TYPE OF FINANCING: | Term loans; other structures available depending on need. |
| AMOUNT: | From $500 up to $35,000 |
| ELIGIBILITY: | Business must be located in the Hampton Roads area and employ less than five people (including owner). |
| USES: | Working capital, equipment purchase/lease and fixed assets. |
| USE RESTRICTIONS: | Loan proceeds may not be used for personal debt, real estate acquisition or tax liabilities. |
| TERMS: | Varies depending on the use of funds. Not to exceed five years. |
| INTEREST RATE: | Varies depending on loan size. |
| APPLICATION PROCESS: | Contact the Center for Community Development, Inc. for full details regarding application procedures. |
| COST AND FEES: | Not more than $40 for an eight week microbusiness development training course. Scholarships may be available. |
