During these extraordinary times, your business may be experiencing difficulties like lower cash flows to help with operating costs. If so, yours isn’t the only one. Countless businesses are dealing with the same. If your company is located in Alamo, then know that the Alamo Economic Development Corporation (EDC) has programs available that can help your company navigate through this rough period. The one we’d like to go over below is the Micro-Loan Program!
The Micro-Loan Program
The Micro-Loan Program was originally created to help local business owners with storefront improvements, repairs, and renovations. This program now utilizes a micro-loan as working capital to help alleviate operating costs that business owners have trouble covering.
Updated terms of the Micro-Loan Program include:
- Company owners receive a six-month window of no repayments that also includes non-repayments of principal and interest.
- Micro-loan recipients have the opportunity of being reimbursed with the interest paid on their loans after six months of on-time payments.
- Stipend loans of up to $10,000.
- Beneficiaries can secure a loan without having to put forth collateral.
To be eligible for the Micro-Loan Program, the following terms must be met:
- The business must be located in Alamo.
- 51% of the business must be owned by a U.S. citizen or resident alien.
- The business owner(s) must provide a lease agreement for the term of the deal. Micro-loans operate on a fixed term of two years.
- The business must have been in operation for a minimum of two years or 24 consecutive months.
- The business owner(s) must have a credit score of 620 or higher.
- The business owner(s) must prove their ability to repay the debt by having debt service coverage of 1.25% or better.
Your Company’s Bottom Line
Cash flow is vital to the life of a business, and without access to funding, it may not survive. Fortunately, the Alamo EDC is here to help. Contact us today to get started!