Areas Served: City of Providence
Loans of up to $20,000 are available to small Providence, Rhode Island businesses that have had difficulty securing traditional financing.
While micro loans are targeted toward existing businesses, start-ups may be considered.
Learn more about eligibility, terms and fees for micro loans.
Eligibility Requirements – You must have 5 or fewer Full Time Equivalent (FTE) employees – You must have previously applied for and been denied funding from at least 2 conventional lenders – You must be creating or retaining one or more jobs – If you are a start-up company, you must have received or agree to receive entrepreneurial/business training or mentoring – Loan funds can only be used for purchase of equipment, materials/inventory and/or working capital; funds cannot be used for renovation or construction.
– Owners of existing businesses must have at least 10% of their personal assets invested as equity in the business.
– Owners of start-ups must have at least 20% of their personal assets invested as equity in the business.
Loan Terms – Typically, 5-year loans are issued at the Prime (interest) Rate +4%.
– The loan may be tied to the useful life of the asset being financed .
-Borrowers must participate in the City’s First Source/Providence Connects hiring program.
– Because these are “secured” loans, collateral will be required in the form of a security interest on the borrower’s personal and/or corporate assets.
Fees – Application Fee and Credit Report Fee ($50) – Loan Origination Fee (1% of loan, due at closing) – Legal and Filing Fees ($350 plus the cost of any Uniform Commercial Code filings required)
Contact InformationProvidence Economic Development Partnership
Address: 444 Westminster Street
City: Providence
State: Rhode Island
Website:
http://www.opportunityprovidence.com/supporting-your-business/financing-and-incentives/financial-assistance
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