Here you will find information about the Technical Assistance provided for Small Businesses, some useful guides, as well as some statistical information about the number of services provided.
The purpose of the Purchase Area Development District's Microloan Fund
is to enhance longterm job growth by providing technical assistance and short-term financing to local entrepreneurs and small and emerging businesses in rural areas who need assistance
in purchasing equipment or require working capital in the Purchase Area.
The maximum loan amount is the lesser of 90% of the total project costs or up to $50,000. The minimum loan size is $1,000. A minimum of 10% owner’s equity must be provided directly from the business. Completed applications are reviewed and considered on a first-come, first-served basis with approval subject to the availability of funds.
Projects financed must have fewer than 50 employees and less then $1 million in annual gross revenues.
Microloan funds may be used to finance the purchase of fixed assets, which includes machinery and equipment, and working capital. Land and building projects are not eligible. Loan Size Limits apply to
Microloan portion only; no limit on overall project size.
A minimum of 10%; can be higher if project has an increased risk factor.
Interest Rates are based on New York Prime Rate at the time of the closing, plus a surcharge
that is based on the calculated risk associated with each project.
Term of Loan:
The term of the loan shall not exceed 6 years and is usually tied to the useful life of the
equipment purchased with the loan funds.
Appropriate collateral may include real estate, equipment, machinery, vehicles and personal
assets of the company’s owners and will include personal guarantees of all principals/owners with more than 20% of the business.
All attorney fees, title insurance fees, filing fees, document preparation fees, appraisals
and other costs associated with closing and securing the loan are due from the borrower upon closing. A non-refundable $20 personal credit report and $35 business credit report
fee are due at the time of application.
Microloan fund borrowers are eligible to receive free pre-loan and post-loan technical
assistance from PADD.
The Microloan Fund is available in: Ballard, Calloway, Carlisle, Fulton,
Graves, Hickman, Marshall and McCracken counties.
Page last updated on Fri, 17 Jan 2014 16:18:00 GMT.