Areas Served: Anderson, Cherokee, Greenville, Greenwood, Laurens, Oconee, Pickens, and Spartanburg Counties
The ADC Micro Loan Fund is the Micro Loan and Entrepreneur Assistance Program.
The Appalachian Development Corporation (ADC) is an approved lender for the USDA Rural Micro Entrepreneur Assistance Program and the SBA Micro Loan Program.
Through these programs eligible candidates will receive technical assistance (TA) to support the development and ongoing success of their business and be eligible to borrow funds from ADC.
Eligible applicants will come from the South Carolina counties of Anderson, Cherokee, Greenville, Greenwood, Laurens, Oconee, Pickens, and Spartanburg.
Does the ADC Micro Loan Fund compete with Financial Institutions? No.
The ADC Micro Loan will complement lending activities of commercial banks.
The Micro Loan Fund is designed to provide loans to $50,000 without bank participation.
What types of loans can be made? – Loan amounts: $5,000 – $50,000 – Loan terms: 3-10 years – Fixed interest rate: 9% on $25K – $50K; 12% on loan under $25K – No prepayment penalty – Collateral required – $250 Origination Fee (loans up to $10K) – $500 Origination Fee (loans over $10K-50K) – $250 ADC Training Course Fee (reimbursed at time of loan closing) What businesses are eligible? – Start-up or existing businesses located in the eligible counties who are unable to obtain sufficient training, consulting, or financing from other financial entities.
– Start-up businesses have been in business less than 2 years.
– Existing businesses have been in business 2 years or more.
– Employ 10 or fewer full-time equivalent employees – Require $50,000 or less in business financing – Business must be at least 51 percent owned by a U.S. citizen or by someone who has residence status.
Ineligible Applicants – Adult-oriented businesses (clubs, websites, bookstores) – Assisted living based from home – Business earns 30% or more of its revenue from gambling/gaming – Multi-level marketing – Non-profit organization – Race courses, golf courses – Restaurant, nightclubs, bars or similar establishments – Speculative real estate – Subordinate liens, line of credit – Unpaid federal and state debts, judgments (i.e. tax liens, student loans, other loans) Micro Loan Guidelines – Initial Interview – Loan Project Assessment and Business Analysis – Business Training Program – Loan Application for Microloan Committee Review – Estimated timeframe for funding 3-6 months – Post-Loan Funding Technical Assistance Existing businesses with two year historically positive cash flow do not have to complete: – Business Training Program – Estimated timeframe for funding 1-2 months – Loan Approval is based on – Business experience – Business plan – Collateral – Completed Technical Assistance Action Plan (training, consulting) – Credit – Job creation and retention – Personal and/or business tax returns – Personal financial statement – Projected repayment ability
Contact InformationAppalachian Development Corporation
Address: 3531 Pelham Rd Suite 100
City: Greenville
State: South Carolina
Website:
http://www.appalachiandevelopmentcorp.com/adc-micro-loan-fund.html
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