Loan Programs

PI Co. Development Commission Revolving Loan Program

• Targets small businesses in Presque Isle County only
• Funded by Rural Development Administration ($60,000) grant
• One job (FTE) created/retained
• Designed to stimulate new business development and expansion
• In some instances, can be used to save an existing business
• 10% collateral in business equity

Tami Ann Fund

• Start up, expansion or improvements for small businesses
• Presque Isle Co. businesses only
• Loan targets low and moderate-income
• Below-market interest rates with 5-year repayment plan
• 10% collateral in business equity

Rogers City Business Loan

• Businesses located within Rogers City limits only
• Loans only for projects that create or retain jobs
• 51% of the jobs created or retained must target low to moderate income
• Interest rate no less than ? of one point above municipal borrowing rate
• Public hearing must be held for each application

SBA 504 Loan through MCDC (Michigan Certified Development Corporation)

• Typically for small & medium-size businesses in operation for 2 years
• Long-term fixed rate for acquisition or construction of fixed assets in $300,000 to $3,000,000 range
• 10% investment by applicant required
• Partnership lending: Private lenders 50% with 1st collateral and MCDC 40% with 2nd collateral

SBA Guaranteed Loan

• Help qualified small businesses obtain financing when they might not be eligible for business loans through normal lending channels
• Flexible program since financing can be guaranteed for a variety of general business purposes
• Loans can be used for most sound business purposes including working capital, machinery and equipment, furniture and fixtures, land and building (including purchase, renovation and new construction), leasehold improvements, and debt refinancing (under special conditions)

7(a) Loan ProgramUS Small Business Administration

• Program for businesses unable to secure financing through normal lending channels for business start-ups, expansion, equipment purchases, working capital, inventory and real estate acquisition
• Applicants should contact local lender for information & assistance in SBA loan application process
• Fixed or variable rates negotiable with lender but cannot exceed range of 2.25% to 4.75% over prime-lending rate
• Maturities: 5-7 years for working capital & up to 25 years for fixed assets

Low Documentation Loan (LOWDOC)

• Purpose to increase the availability of loans to start or grow a business
• Simple, one-page application form and rapid turnaround
• Completed applications processed within 36 hours of receipt from the lender
• Loan decision process relies heavily upon strength of the principals' character and credit history
• Interest rates range from 2.25%-2.75% over prime for loans of 7-25 years.
• Loans under $50,000 may be subject to slightly higher rates
• The SBA guarantee is 85%. Guaranty percent follows 7(a) policy

SBA Micro Loan Program

• Availability of very small loans to prospective small business borrowers
• Start up, newly established, and growing small businesses are eligible
• Funds available to nonprofit intermediaries, who in turn make loans to eligible borrowers
• Loans may be used to finance the purchase of machinery and equipment, furniture and fixtures, inventory, supplies and working capital, but not to pay existing debts
• Interest rates may not be higher than 4% percent over the prime rate with maturity up to six years

Loan Prequalification Program

• Allows business applicants to have their loan applications analyzed & potentially sanctioned by SBA before they are taken to lenders for consideration
• Focuses on applicant?s character, credit, experience and reliability rather than assets
• SBA-designated intermediary works with business owner to review and strengthen loan application
• Review based on key financial ratios, credit and business history, and loan-request terms
• Interest rates, maturities, collateral policy, and guaranty percentages all follow standard 7(a) loan program

CAPLines

• Umbrella program under which the SBA helps small businesses meet their short-term and cyclical working capital needs
• Five short-term working capital loan programs under CAPLines umbrella, including Seasonal Line, Contract Line, Builders Line, Standard Asset-Based Line, and Small Asset-Based Line
• Maturity of up to five years but a shorter initial maturity may be established
• Interest rates negotiated with lender and can be up to 2.25% over prime rate

SBA Express loans

• Provides additional incentives to lenders to make small business loans and use their own forms and processes to approve loan
• 50% guarantee on loan by SBA
• Maturity: 5-10 years and up to 25 years for fixed-asset loans
• Lenders and borrowers negotiate fixed or variable interest rate from 2.25% to 2.75% over prime