Business (Microenterprise) Loan

For PDF document that can be shared, see Fast Facts - Business Loan

What are Microenterprise Loans?

CEO Microenterprise Loans offer participants enrolled in IRC’s Microenterprise Development Programs access to capital to start or expand small businesses.

Who can apply?

CEO’s loans are designed to help individuals engaged with IRC’s related economic development programs. As with all CEO loans, applicants must complete training on banking and credit. For Microenterprise Loans, CEO also requires that all applicants be enrolled in an IRC Microenterprise Development Program. Some IRC offices may have additional requirements for program participation depending on local capacity – ask your local IRC office about any additional terms.

It is important to note that being eligible to apply for a loan is very different than being approved for a loan. Approvals are handled by CEO staff and not IRC. Please review the article titled ‘How CEO Makes Loan Decisions’ for important information on getting approved for a CEO loan.

How much does the loan cost?

The monthly payment amount will depend on the total loan amount, the number of months to repay, and the interest rate of your loan. Generally, the longer the repayment on a loan, the lower the monthly payments but the higher the total interest paid will be. See our current rate sheet for loan amounts, rates, and terms.

Other things to consider

• Loan applications of more than $20,000 require internal approval and an external loan committee approval, leading to increased time and scrutiny before a final decision is made.
• You will need a business plan and 12-month business cash flow projections to submit with your loan application over $10,000. IRC business counselors can help you with these documents.
• Businesses that derive a majority of their sales from alcohol, tobacco, firearms, federally outlawed substances, and/or adult entertainment are NOT eligible for financing.
• Co-signors and collateral are not required but will help strengthen an application.
• Applicants must have an ownership role in a for-profit business, operating within the U.S.
• Funds must be used for business expenses; including, but not limited to:
  o Equipment, machinery, vehicles
  o Inventory, supplies, raw materials
  o Licensing and Permitting Fees
  o Legal and Professional Fees
  o Website, software, and other technology
  o Marketing and Branding materials
  o Working Capital

How to apply

1. Contact your local office with Microenterprise Development Programs to complete a CEO Loan Application and meet with a Business Counselor. Here’s a list of the items you’ll need for the loan request:
   • Personal email address
   • Valid government-issued photo ID
   • A U.S. checking or business bank account with routing and account number
   • 2 most recent monthly bank statements (personal and business)
   • Business license, Articles of Incorporation, EIN if available
   • 2 most recent pay stubs OR 2 months of verifiable business income statements
   • Previous year's tax return (personal and business)
   • Business plan and 12-month business cash flow projections
2. Your business counselor will upload your application and attachments to CEO, and let you know if we have any questions (loan decisions are usually made within four weeks of application).
3. If approved, you will need to review and electronically sign the contract.
4. If the collateral is offered as a condition of loan approval, you will need to release your interest in the asset and provide the title or other legal ownership record before funds are made available to you.
5. Funds are deposited directly into your bank account via electronic ACH and are available within one to three business days after signing the loan contract, depending on bank processing times.

Your local contact will be able to answer any additional questions you might have.

For California Residents

• CA FINANCE LENDER’S LICENSE #60DBO54868
• LOANS MADE OR ARRANGED PURSUANT TO CALIFORNIA FINANCE LAW LICENSE
• FOR INFORMATION CONTACT THE DEPARTMENT OF BUSINESS OVERSIGHT, STATE OF CALIFORNIA