Types of business turnover and microloan funds

As bank loans become tighter, spinning and microloan funds are emerging as a prime source for entrepreneurs to secure business funds. Microloan programs are offered by a variety of federal and state non-profit organizations that support economic development.

The sources of funding shown below are not borrowed directly from financing agencies, but rather are provided to intermediary groups such as economic development agencies, municipalities, etc. and distributed throughout the region. These funds are provided free of charge to increase economic activity and create/retain jobs. Here is an overview of the most common revolving and microloan funds for businesses.

The SBA 7m-Small and Medium Business Administration (SBA) 7 (m) microloan program provides small, short-term loans to small businesses and organizations such as non-profit child care and daycare. The Small and Medium Business Administration makes funds readily available to designated lenders acting as intermediaries. These intermediaries are local based, non-profit organizations with expertise in technical support and management as well as general loans. The intermediary then provides the loan directly to the qualified borrower. The average loan amount is $10,000 to $15,000, and the maximum loan amount is $35,000. A general overview of fund usage is rental or retrofit improvement or working capital. Job creation or retention requirements apply to dc-mong.com.

Loan Amount: Up to $35,000

Interest rate: typically 5%

The purpose of the USDA Intermediary Relending Program (IRP-IRP) program is to alleviate poverty and increase economic activity and employment in rural communities. Loans are provided to local agencies (intermediaries) to establish revolving loan funds under the IRP program. These spinning dc-mong.com funds will be used to support financial business and economic development activities to create or retain jobs in disadvantaged communities. Intermediaries are encouraged to work with state and local strategies, and with other public and private organizations that can provide free resources. Job creation or retention requirements apply.

Loan Amount: Up to $150,000

Interest rate: typically 5%

USDA RMAP-USDA's Rural Microentrepreneur Assistance Program (RMAP) is designed to create jobs and strengthen rural communities by providing professional technical assistance and loans for small businesses.

RMAP provides loans and subsidies to the Microenterprise Development Organization (MDO), which in turn provides technical services and distributes micro-loans to rural small entrepreneurs. MDOs do not have to be in rural areas to qualify for participation, but small entrepreneurs do. Small businesses can be food or agriculture related, but they don't have to.

Loan financing, training, operational support, business plans, market development assistance and other services to rural small entrepreneurs are provided free of charge. Job creation or retention requirements apply.

Loan Amount: Up to $50,000

Interest rate: typically 5%

The EDA Revolving Loan Program-EDA (Economic Development Administration)'s Revolving Loan Fund Program is an economic development financing program in Economic Development Management that benefits communities through tax base expansion, business growth, and job creation while growing US small businesses. . Loans can be used by most for-profit businesses to purchase and/or renovate capital assets, including land, buildings, and equipment, or to finance working capital needs such as inventory and accounts receivable. Job creation or retention requirements apply.

Loan Amount: Up to $150,000

Interest rate: Usually it is between 3% and 5%.

CDBG Loan Program-Funding for the Community Development Block Grants Program (CSBG) program is provided by Housing and Urban Development (HUD). These grants can be used in communities with a population of less than 50,000 for the purpose of attracting new or existing businesses, as long as the project matches one of three national goals.

1. Mainly benefiting low-income and/or middle-income groups.

2. Eliminate or prevent slums and/or plagues.

3. Address impending health and/or safety issues.

Job creation or retention requirements apply.

Loan Amount: Varies by state

Interest rate: typically 5%

CDBG Loan Program-The Community Service Block Grant (CSBG) Loan Program provides long-term fixed rate financing to new or expanding small businesses in exchange for job creation and employment for low-income people. Funds are usually administered jointly between the state economic development agency and the agency of community action.

CDBG Loan Program-Funding for the Community Development Block Grants Program (CSBG) program is provided by Housing and Urban Development (HUD). These grants can be used in communities with a population of less than 50,000 for the purpose of attracting new or existing businesses, as long as the project matches one of three national goals.