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The Oakland County Microloan Program was created through a partnership between Oakland County, the Oakland County Economic Development Corporation (EDC), the Center for Empowerment & Economic Development (CEED) and the U.S. Small Business Administration.
"We're attacking the lousy economy from many directions," Patterson said. "Small businesses are vital to our economic growth. This is another effort by our county to support our local businesses."
The loans are geared towards small businesses that are unable to get financing from traditional sources. The loan can be used for equipment, inventory, supplies and some working capital.
Microloans are available for:
Start-up and expansion of a business. Microloan may be used for equipment, inventory, supplies and some working capital. Microloans are up to $35,000
Eligibility:
Applicants for Oakland County Micro Loan program applicants must meet the following requirements:
- › Business must be in Oakland County
- ›Complete a loan application and submit supporting documentation
- ›Businesses less than three years old must have a business plan
- ›Submit a non-refundable $75 application fee
- ›Demonstrate the inability to obtain financing from a traditional lending source.
- Two letters of denial from banks is required for loan requests of more than $20,000.
- ›Be current on all federal debt including student loans, child support and taxes.
Loan Terms:
Length: The loan may be extended for up to five years
Interest: Fixed interest rate of prime plus4% (not less than 8%)
Collateral: Collateral will be sought and personal guarantees are required
by all owners of 20% or more.
Business Assistance: Borrowers must meet with CEED staff once a month or
as deemed necessary.
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