The Center for Enterprise Opportunity SBA Microloan Program provides small, short-term loans to Florida small business concerns in Palm Beach County, Hendry, Indian River, Okeechobee, Martin, Palm Beach County Development Regions and St. Lucie and certain types of not-for-profit child-care centers.
The SBA makes funds available to specially designated intermediary lenders, which are nonprofit community-based organizations with experience in lending as well as management and technical assistance.
These intermediaries make loans to eligible borrowers.
The maximum loan amount is $50,000, but the average microloan is about $13,000. Microloans may be used for the following purposes:
•The purchase of inventory or supplies
•The purchase of furniture or fixtures
•The purchase of machinery or equipment.
Proceeds from a microloan cannot be used to pay existing debts or to purchase real estate.
Terms, Interest Rates, and Fees Loan terms vary according to:
•The size of the loan
•The planned use of funds
•The requirements of the intermediary lender
•The needs of the small business borrower The maximum term allowed for a microloan is six years.
Interest rates vary, depending on the intermediary lender and costs to the intermediary from the U.S. Treasury.
Generally, these rates will be between 8 and 13 percent.
Collateral Each intermediary lender has its own lending and credit requirements.
Generally, intermediaries require some type of collateral as well as the personal guarantee of the business owner.
Technical Assistance Each intermediary (lender) is required to provide business training and technical assistance to its micro-borrowers.
If you apply for microloan financing, you may be required to fulfill training and/or planning requirements before your loan application is considered.
This business training can be helpful to you as you launch or expand your small business
Center for Enterprise Opportunity
Address: 2200 North Florida Mango Road, Suite. 401
City: West Palm Beach