Nashua Microloan Fund
Are you just starting out? The Micro-loan Fund assists companies and entrepreneurs who may not currently be eligible to receive loans from traditional banks and financial institutions. Loans are available to startups or existing micro-businesses for up to $25,000. The Micro-loan Fund works in partnership with local lenders to be a catalyst for projects that lead to job creation.
The Nashua Microloan Fund application is a two step process:
Eligibility
In order to be eligible for funding, the applicant must:
- Qualify as a micro entrepreneur or be someone who is looking to start a microenterprise. A micro-enterprise is defined as a small business with five (5) or fewer employees, at least one of whom is the owner.
- Meet one of the following national objectives of the CDBG program:
- benefiting low- and moderate-income persons or
- preventing/eliminating slums or blight
This is most commonly achieved if the micro entrepreneur’s household income does not exceed income limits for low and moderate income households as defined annually by HUD.
Use of Funds
- Working capital
- Purchase of equipment
- Purchase of inventory
- Construction and/or renovation of commercial space
Loan Terms
While terms can be flexible to meet the specific needs of the project, most loans will be structured in the following manner:
- Loan Amount: between $5,000 and $25,000.
- Interest Rate: fixed rate at a minimum of 10%, set at Prime +5-7%
- Loan Terms: 3 years maximum/3 year amortization
Application Process & Fees
The Nashua Microloan Fund application is a two step process:
- A pre-application can be submitted at no cost and will be used to determine basic project eligibility and feasibility.
- If deemed eligible, a full application can be submitted along with a non-refundable application fee of $100.
More detailed information can be found in the Nashua Microloan Fund pre-application form.
The Nashua Microloan Fund pre-application can be downloaded here.