At the Alamo Economic Development Corporation (EDC), we’re always working towards fostering a healthy economic environment for the city. Throughout the year, we host business workshops and seminars with information about different grants and business loans that we have available for those wanting to begin a commercial venture. Last year, with help from the USDA Rural Development Program, we introduced our Micro-Loan Program. Here are a few things to know about it.
How Does it Work?
The Micro-Loan Program assists businesses by allowing them to pay for repairs and renovations. The MLP is a self-sustaining program that operates by lending money which is repaid and then used on the next micro loan.
Here are some other pointers to know about the program:
- Companies that have been in business for at least two years (24 consecutive months) are eligible.
- The applicant must have a credit score of 620 or higher.
- 51% of the business must be owned by a U.S. citizen or resident alien.
- Applicants must also provide a lease agreement for the term of the loan.
What Are the Terms?
The program’s terms include:
- A 10% fixed interest rate.
- A loan minimum of $1,000 and a maximum of $5,000.
- A two-year set term.
- No collateral.
- Submitting at least two bids/quotes from vendors or contractors who will perform the repairs/renovations.
How Does the Application Process Work?
An application must be filled out along with:
- A personal financial statement.
- An executive summary of the financial projection of the business for the next three years.
- Tax returns from the last two years and the business owner’s personal tax returns.
- A profit and loss statement from the most recent quarter.
Afterward, all forms will be reviewed by the Alamo EDC and an advisory committee. A decision will be made within 30 to 45 days
Let’s Get Started!
Contact us today to learn how we can help your dream become a commercial reality in Alamo!