Micro-Loans

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.

 

Center for Empowerment and Economic Development (CEED)
2002 Hogback Road Suite 12
Ann Arbor, MI 48105
Executive Director: Michelle Richards
Microloan Contact: Michelle Richards
E-mail:mrichards@wwnet.net
Phone: 734-677-1400 Fax: 734-677-1465
Service Area: Washtenaw, Oakland, Wayne, and Livingston counties

Kent Area MicroBusiness Loan Services
233 East Fulton Street, Suite 101
Grand Rapids, MI 49503
Executive Director: Edward L. Garner
Microloan Contact: Edward L. Garner
E-mail:garnere@kamis.org
Phone: 616-771-6880 Fax: 616-771-8021
Service Area: Kent county

Community Capital & Development Corp.(MI)
The Walter Reuther Center
316 West Water St.
Flint, MI 48503

Executive Director: Harold Hill
Microloan Contact: Jatasha Washington
E-mail:ccdc@tir.com
Phone: 810-239-5847 Fax: 810-239-5575
Service Area: Genesee County

Northern Economic Initiative Corp.
228 W. Washington Street
Marquette, MI 49855

Executive Director:
Microloan Contact: Todd Horton
E-mail: todd_horton@northerninits.com
Phone: 906-226-1662
Service Area: Upper Peninsula of Michigan

Rural Michigan Intermediary Relending Program, Inc.
121 East Front Street Suite 201
Traverse City, MI 49686
Executive Director: Michael Haddad
Microloan Contact: Stephen Spencer
E-mail:mhaddad@timbc.com
Phone: 231-941-5858 Fax: 231-941-4616
Service Area: Emmet, Charlevoix, Antrim, Leelanau, Benzie, Grand, Traverse, Kalkaska, Manistee, Wexford, Missaukee, Cheboygan, Presque Isle, Otsego, Montmorency, Alpena, Crawford, Oscoda, Alcona, Roscommon, Ogemaw, Iosco, Osceola, Mason, Lake counties

Saginaw Economic Development Corporation
301 E. Genesee, 3rd Floor
Saginaw, MI 48607
Executive Director: Leslie Weaver
Microloan Contact: Leslie Weaver
E-mail: SEDCLW@aol.com
Phone: 989-759-1395 Fax: 989-754-1715
Service Area: Saginaw county

 

Obtained from SBA’s Web Page