Microloan

SEDC / SBA MICROLOAN PROGRAM

Type of Program:	Direct loans to small businesses.
Financing Available:	Up to $50,000. If amount is over $15,000, must have denial letter from financial institution.
Use of Loan Proceeds:	Working capital, inventory, supplies, furniture, fixtures, machinery, leasehold improvements and equipment. Real estate purchases are not eligible.
Term of Loan:	Maximum maturity of 6 years.
Interest Rate:	Currently a fixed rate of 10%. Subject to change at discretion of SEDC Board of Directors.
Down Payment:	None required, but always preferred. Each situation will be evaluated consistent with sound credit policies.
Process Time:	30-45 days from receipt of complete application to loan closing. Application deadline is the 1st Wednesday of each month.
Collateral:	First lien on any assets financed by Microloan proceeds and other collateral deemed appropriate.
Guarantees:	Personal and/or Corporate Guaranty required.
Eligible Businesses:	Must meet SBA size standards.
Ineligible Businesses:	Non-profit, consumer and marketing coops, floor plans, gambling concerns, any concern involved in speculation.
Area of Operation:	Generally includes Buena Vista, Cherokee, Clay, Crawford, Dickison, Ida, Lyon, Monona, O’Brien, Osceola, Plymouth, Sioux, Woodbury counties in Iowa; Dakota and Dixon counties in Nebraska; Union and Clay counties in South Dakota.
Technical Assistance:	Borrowers must agree to cooperate with SEDC in development of a plan for intensive technical assistance provided by SEDC at no cost to borrower.
Job Creation Criteria:	Creation of new jobs not required.
Fees:	$20.00 credit report fee per applicant on the loan application and all costs involved in closing the loan (approximately $150.00).

SEDC / SBA MICROLOAN PROGRAM

Siouxland Economic Development Corporation