NEW MICRO LOAN PRODUCTS AVAILABLE
In these challenging times, the weight of economic catastrophe is falling squarely on the shoulders of small business owners in America. With this in mind, Prestamos CDFI has made available several microloan packages to help small businesses meet the challenges they are facing.
It can be difficult to get access to small amounts of funds through traditional lending channels. Sometimes a business simply needs a bump in capital to fix or purchase equipment, start a new product line, expand its staff or fleet, or adapt to the current, unique business environment.
The Prestamos CDFI microloan product line helps solve these obstacles. Select the microloan that best suits your needs. Click on one of the learn more buttons below to get more information on that specific product and fill out the form on that page to get the process started.
The Prestamos Mini-Micro is a fast-tracked small business loan geared towards supporting small businesses in need of working capital up to $5,000. Rates are as low as 7% and terms up to 36 months depending on circumstances.
The Mid-Micro is a small business loan intended to support local businesses needing funding of up to $15,000. Rates are as low as 6.75% and terms up to 48 months depending on circumstances. You might even qualify for up to 3 months of interest-only payments.
Sometimes you need more significant funds to help your business grow. The Mega-Micro is for small businesses with this in mind. Get access to capital up to $50,000. Rates as low as 6.5% and terms up to 60 months. Availability of up to 3 months of interest-only payments.
Our Standard Micro Loans
(Up tp $50,000)
What are Microloans?
Micro Loans have been a big factor in helping to support business owners by offering smaller dollar amount loans. They can help get by in situations of business distress or to allow for growth into new products and services without leveraging a significant amount of collateral.
Prestamos provides microloans up to $50,000 at a fairly low-interest rate and they usually have a 5-year payback term. Smaller loans such as these can be difficult to get from traditional lenders because they take nearly the same amount of effort to manage but have a significantly lower profit margin for the lending institution. Prestamos avails a Micro Loan Program to the community because we see its potential to elevate business ownership and build wealth in targeted communities.
A micro-loan can be the difference in success or failure for a small business owner when the funds are invested in a smart way. They are generally pretty low-risk simply due to the nature of their size and often are paid back quickly with an affordable payment plan. They can even help prepare an entrepreneur to borrow larger amounts in the future to expand their business by building a strong credit profile.
Prestamos MicroLoan Program
The Prestamos MicroLoan Program helps business owners to obtain access to the capital they require to start, sustain, and grow their businesses. The loans are usually used for buying inventory and supplies, or as working capital, or getting machinery and equipment for service and product line expansion. There can be limitations on the use of the funds, depending on how the loan is structured. This is best discussed on a case by case basis with one of our loan officers.
One of the great things about the MicroLoan Program is that it provides access to a team of business consultants who can help advise you in many areas of your business such as general business activities, financial processes, marketing, websites, and online branding. Working with the Business Consulting team can support your marketing efforts and getting your business planning mapped out in order to best help you to succeed.
Your Business and Microloans
A microloan can help businesses without past (or a poor) business credit or if there is another reason why a traditional loan is not a current option. If your business needs new inventory, or you need to purchase new equipment, or just need some extra working capital a microloan is a low-risk way of accomplishing that.
Even if your business is booming, there may be some reason it is not qualified by a traditional lender for a loan. Here are some of the reasons that you might run into:
- Lack of Collateral
- Low Cash Flow
- Unfavorable Credit Score/History
- Too Small Loan Amount Needed
- Perceived Risk
Not only are microloans less affected by these, but they typically have a faster application and awarding process than a traditional business loan. It is possible a business may be able to qualify for a microloan, even if they have no business credit score.
If you have run into any of the issues above, reach out to our team to discuss your loan options. Just click on the “Apply Now” button.
Eligibility Requirements
Loan Size
• $10,000 up to $50,000
Years in Business
• Start-up Business allowed
Loan Terms
• Up to 5 years
Amortization
• Up to 5 years
Interest Rate
• Fixed
• Rates as low as 7.5%
Collateral
• Security interest in business assets
• Equipment
• Real Estate
• Vehicles
• Other Personal Property
Minimum Injection
• 10 to 20 percent
Loan Fees
• Credit Report Fee
• Application Fee
• Third-Party Fees (i.e. Appraisal, Title, Legal, Filing, etc.)
• Origination Fee
Guarantee
• Unlimited personal guaranty of principal owners of 20% or more ownership
• Unlimited guaranty of an affiliate business
Eligible Uses
• Working capital
• Inventory or supplies
• Furniture or fixtures
• Machinery or equipment
Not Eligible Uses
• Real estate
• Delinquent taxes
• Down payments
Community Impact Requirements
• Create or retain Jobs
Terms & Conditions
• No Pre-Payment Fee
• Collateral required
*Information subject to change without notice
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