• Jan 03, 22
• spencergregory
• Revolving Loan Fund Directory
• 0 comment

The purpose of the Tennessee Small and Minority-Owned Business (SMOB) Loan Program is to provide financing for small and minority-owned businesses throughout the state.

The Program Administrator for the program is the South Central Tennessee Development District including Perry, Wayne, Hickman, Lewis, Lawrence, Maury, Giles, Marshall, Lincoln, Bedford, Moore, Coffee and Franklin Counties.

Eligibility
€¢ Use of Proceeds Funds can be used for acquisition of machinery and equipment, working capital, inventory, supplies and materials and other business-related activities.

Loan funds cannot be used to acquire real estate.


€¢ Loan Amount Up to $125,000 maximum per small business concern.


€¢ Location Either the business or its corporate headquarters should be located within the 13 southern middle Tennessee counties served by South Central Tennessee Development District.


€¢ Type of Business Any for-profit business that can qualify as a small business.

Source of Funds The Tennessee Treasury Department has responsibility for administration of the funds.

Intermediaries such as the South Central Tennessee Development District have been approved as Qualified Organizations to administer the program for specific geographic areas of Tennessee.

Project Size There is no limit to the project size.

The only limiting factor is the amount of the SMOB participation, which cannot exceed $125,000. Terms Repayment terms will depend upon the collateral and the use, usually no more than seven years.

Normally, the repayment term will be up to five years for working capital and up to seven years for machinery and equipment.

Program Requirements The small business concern should be located in Tennessee.

SMOB financing can be used in conjunction with other sources of financing.

The business must be able to show, either from historical financial statements or from reasonable projections, that there will be sufficient cash flow to service all of the debt proposed for the project and provide evidence of the availability of sufficient working capital for the project.

The owners/managers must have relevant management experience and satisfactory credit histories.

Collateral Usually, the SMOB loan will be secured by a lien on the assets being purchased and any other business assets that may be available.

In some instances, pledge of personal collateral may be necessary to secure the personal guarantees of the owner(s).

If the business does not have sufficient collateral to secure the amount of loan being requested, a pledge of outside assets may be required.





Contact Information
South Central Tennessee Development District
Address: 101 Sam Watkins Boulevard
City: Mt. Pleasant
State: Tennessee

Website: http://www.sctdd.org/index.php?option=com_content&view=article&id=60&Itemid=76

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