SBA Microloan Program

Enterprise Development Corporation's Microloan Program provides funding for micro-entrepreneurs who cannot yet qualify for adequate bank financing. Our goal is to assist both start-up and expanding businesses succeed by providing both financing and on-going technical assistance.

Terms
Our program provides small business loans up to $25,000 for businesses located in Boone, Callaway or Cooper counties. The loans are funded at a fixed interest rate, and have no penalty for early repayment. The term, or length of the loan, can be from 1 to 5 years. For more detail on the specifics of the Microloan Program and the eligibility requirements, click here.

Credit, Collateral and Down Payment
Microloan applicants are expected to demonstrate their creditworthiness - that is a reasonable assurance that the loan will be repaid. Enterprise does not use a minimum credit score to determine eligibility. Rather, an applicant's credit history will be reviewed and reasonable circumstances surrounding any adverse credit situations will be taken into consideration. How an applicant has handled debt obligations in the past, or following any adverse credit situations, is very important.

Microloans also require collateral, including a personal guaranty from the entrepreneur. While specific collateral requirements vary in each circumstance, collateral is necessary to show that the applicant is willing to assume some of the risk for their business loan.

Down payment, or borrower's contribution of funds into the project, is also required for microloans. Enterprise does not use a set percentage of down payment, and the amount may vary in each circumstance, but the applicant's willingness to contribute their own funds into the project demonstrates their commitment to their business venture.

On-going Technical Assistance for Borrowers
Our Microloan Program provides more than loans to borrowers. To ensure the success of micro entrepreneurs, we provide one-on-one business advisement, training seminars, and act as a resource for other needed professional services. The success of our borrowers ensures that loan funds will be available to assist other micro entrepreneurs in the future.

If you need help writing a business plan or resume, or preparing financial projections for your business, please contact the Small Business Development Center , at 573-882-7096. This is a free service for microloan applicants.

Application Process
If you would like more information about the Microloan Application Process or to download an application for our Microloan Program, click here.