The creation of the Micro-Loan Program came in order to help local business owners with storefront improvements, repairs and renovations. This program now utilizes a micro-loan as working capital to help alleviate operating costs that business owners have trouble covering.
Updated Terms of the Micro-Loan Program Include:
- Company owners receive a six-month window of no repayments. This also includes non-repayments of principal and interest.
- Micro-loan recipients have the opportunity of being reimbursed with the interest paid on their loans after six months of on-time payments.
- Stipend loans of up to $10,000.
- Beneficiaries can secure a loan without having to put forth collateral.
To be eligible for the Micro-Loan Program, businesses must:
- Be located in Alamo.
- Have a U.S. resident or resident alien owning at least 51 percent of the business.
- Provide a lease agreement for the term of the deal. Loans operate on a fixed term of two years.
- Be in operation for a minimum of two years or 24 consecutive months.
- Have owner(s) with a credit score of 620 or higher.
- Have owner(s) prove their ability to repay the debt by having debt service coverage of 1.25 percent or better.