MINORITY LOAN FUND​

The Small and Minority Business Loan Fund provides financing assistance to small businesses operating or locating in the City of Decatur. Goals of the program are to increase the number of job opportunities, especially to low/moderate income people, and to rehabilitate commercial buildings in neighborhoods through loan assistance to small businesses.

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ELIGIBLE APPLICANTS AND PROJECTS

• Business involved in a profit making enterprise.

• Businesses located within the Decatur city limits.

• Special emphasis on businesses located in inner city.

• Specific emphasis on women and minority owned businesses,

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ELIGIBLE EXPENSES

• Building acquisition and rehabilitation.

• Equipment and machinery.

• Working capital.

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LOAN SELECTION CRITERIA

• Property in an eligible census tract where there is at least a 60 percent low/moderate income population.

• Growth potential of business.

• Probability of success and credit worthiness.

• Number of jobs created or retained.

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AMOUNT OF LOAN

The maximum amount of a loan for any one project is $50,000.00 or 80 percent of the total project cost, whichever is less. The minimum loan is $5,000.00. Owner investment must be at least 20 percent or more of the project cost.

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INTEREST RATE

The minimum interest rate to be charged is the prime rate on the date of loan approval.

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TERM OF LOAN

Loan terms are negotiable, with a maximum term of ten years.

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COLLATERAL REQUIREMENTS

The loan generally is secured by the assets acquired with loan proceeds. A personal guarantee or other collateral also may be required.

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ADDITIONAL REQUIREMENTS

• Complete application.

• Business plan.

• A continuing relationship with SCORE (Service Corps of Retired Executives) or another similar agency in the initial period of operation for new businesses.

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FEES AND COSTS

An application fee of $25.00. Also, any incidental costs incurred by either the applicant or CICD with regard to the loan are the applicant’s responsibility.

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