Camille’s story is an example of the successful use of an SBA microloan used to finance her business through its next phase of growth.
Camille had recently expanded her services and added another employee. She needed working capital and new hardware and equipment to get her data analytics company through its next phase of growth.
She was specifically looking for a lender that would require minimal capital from her so she could keep the cash flow she was already generating in her business. The loan would only need to be for a short term and could be paid back by two client projects that were already in process.
She approached her existing bank but was unfortunately short on collateral and fell just below the bank’s requirements. Her banker referred her to SCKEDD – a local non-profit lender – and asked them to look at the project. She worked with SCKEDD and was quickly approved for an SBA MicroLoan, designed to support female entrepreneurs like Camille. The loan allowed her to borrow working capital for her business expansion.
She continues to work with SCKEDD for operations advice for her growing business.
The SBA Microloan is designed to provide financing opportunities to business owners that often face greater challenges obtaining funding including women-owned businesses, low-income individuals, veterans, minority entrepreneurs, and small business owners.
The SBA Microloan can offer up to $50,000 for financing.
THE PROCESS for a SBA Microloan
Connect with a bank or local lender. Your lender may recommend that you connect with SCKEDD.
If your project is eligible, you submit a loan application, business plan, and financials so we may begin underwriting.
SCKEDD will close, fund your loan, and will service your loan for its lifetime.
You are eligible to attain free business-based technical assistance for the life of your loan.
SCKEDD business-based technical assistance is designed to fit your needs and may include marketing, general management, software training, accounting, as well as QuickBooksTM software training.
Qualified borrowers can use SCKEDD Microloan to
Finance working capital
Purchase machinery or equipment, furniture, fixtures, inventory, vehicles, and make leasehold improvements
REQUIREMENTS FOR A MICROLOAN
What are the requirements for a Short-Term Microloan? You may qualify if you and your business meet the following criteria
The business is for-profit
The business is in our service area of 45 counties in southwest and south-central Kansas including Barber, Barton, Butler, Chase, Chautauqua, Clark, Comanche, Cowley, Edwards, Elk, Finney, Ford, Grant, Gray, Greeley, Greenwood, Hamilton, Harper, Harvey, Haskell, Hodgeman, Kearney, Kingman, Kiowa, Lane, Lyon, Marion, McPherson, Meade, Morton, Ness, Pawnee, Pratt, Reno, Rice, Rush, Saline, Scott, Sedgwick, Seward, Stafford, Stanton, Stevens, Sumner, Wichita
Individuals that own 20% or more of the company are willing to act as personal guarantors
RATES AND FEES
Rates are set for microloans and fall into one of two options.
8.125% for loans of $10,000 or more
8.5% for loans less than $10,000
Closing fee of 3% for loans with more than 1-year term; Closing fee of 2% if loan term is less than one year
Any direct or third-party closing costs associated with the loan
In addition to the following terms, an interest-only period is possible.
Maximum 6 years - most loans average 48-60 months.
Based on the use of funds