CDFI: (Community Development Financial Institution) is a lending operation designed to make loan funds available to serve low-income people & communities lacking adequate access and accepts credit risks beyond the tolerance of regulated lenders.
TYPES OF LOANS WE OFFER
Small Business Loan Program
The Small Business Loan program is designed to provide access to capital to Georgia businesses with less than 500 employees in both urban and rural locations. Not-for-profit organizations qualify. Projects must create job opportunities in lower income, minority, and other undeserved communities. Businesses served include those owned by women and minorities.
The Program provides loans in amounts of up to $250,000. It may also provide gap financing in combination with bank or other non-federal funding. The Program can provide up to 75% of the total project costs.
Use of Funds: Start up costs, working capital, franchise fees, inventory, equipment and machinery, real estate purchase or construction/rehabilitation. Refinancing is usually not eligible.
Loan Amount may be as much as $250,000 when the Program is the only financing source. Loans of up to $3 million may be provided in gap financing projects.
Borrower’s Equity: Loan applicants are required to provide at least a 10% equity contribution to the project.
Rate and Terms: Interest rate may be as low as 8%. Loan repayment term can be up to ten years (minimum 12 months). Amortization period may be longer than the loan term. Flexible repayment conditions. Southwest GA United may subordinate its collateral position to the bank.
Home Repair Loans
Loans of as much as $10,000 for home repairs can be structured to meet the needs of fixed income borrowers, including persons with a disability and the elderly.
Rates & Terms: 8% – 12%. Typically 3 year term; Fully amortizing.