Loan ProgramMicro Loan Grant Program
The Lincoln Economic Development Authority has been awarded $100,000 to begin a Regional Micro-Loan Program. The Micro-Loan Program will allow the Lincoln EDA to make loans between $2,000 and $15,000 to businesses in the counties of Boone, Lincoln, Logan and Mingo.
Applications will be taken at different locations throughout each of the counties. Once an application is complete it will be reviewed by the Lincoln EDA Loan Advisory Committee, which consists of representatives from all four counties. The Loan Advisory Committee will then approve or deny the application.
Specialized Micro-Loan Revolving Loan Fund
The Micro-Loan Revolving Loan Fund (MRLF) is a specialized venture capital program to assist small businesses. Specifically, the MRLF provides capital for entrepreneurs and companies looking to expand and/or scale up form prototype to production level. Emphasis is placed on growth oriented industries in a four county region that includes the counties of Boone, Lincoln, Logan, and Mingo Counties.
One barrier to this transformation has been a scarcity of capital resources. Many small businesses have limited access to capital because they are considered high risk by conventional lending institutions, and therefore are frequently thwarted in their efforts to grow.
To alleviate this capital resource void the MRLF offers innovative financing to companies that meet its objectives and eligibility criteria. The goal of the MRLF is to stimulate development by offering micro-loans to credit worthy firms that could no obtain funds otherwise.
Eligibility
To be eligible for a Micro-Loan, companies must be located in areas that are experiencing high levels of long-term economic deterioration due to the loss of jobs. This includes all of Boone, Lincoln, Logan and Mingo Counties.
Also, priority is given to small businesses that create and/or retain the highest number of service related and tourism jobs. Additional consideration is also given to firms owned or controlled by minorities or other disadvantaged groups.
In addition, there are a variety of other requirements that must be met before a loan is approved. a loan review committee, consisting of members from all four counties, is responsible for analyzing and approving all loan applications.
Minimum Criteria:
- Loans range from $2,000 to 15,000.
- Interest rates of Prime + 2-4%.
- 5% late fee after 10 day grace period.
- Must provide credit report with application.
- Initial payment due within 90 days of loan closing.
- Three hours of technical assistance training.
Loan Fund Objectives
- To aid in the development of small firms.
- To help businesses owned and operated by minorities, women and the economically disadvantaged.
- To provide gap financing for new and expanding businesses.
- To assist in locating sources of capital for new businesses.
- The creation and preservation of jobs in Boone, Lincoln, Logan, and Mingo Counties.
Micro-Loan Services
- Financial Services
- Management assistance & training
- Contract/procurement assistance
- Business planning assistance
- Telecommunications capabilities
- Prototyping & reverse engineering
- Business development seminars
- Applied research
- International market development
- Start-up business assistance
- Flexible manufacturing technologies
Some of the above services will be coordinated with the Small Business Development Center and the Robert C. Byrd Institute for Flexible Manufacturing. Please note: These loan proceeds can not be used for rolling stock, speculative buildings, loans to retire existing debts, business activities outside the four county area or for down payment purposes.
Downloadable Micro-Loan Application and Supporting Documents:
WV SBDC Training Newsletter-Nov 07
WV SBDC Training Newsletter-Nov 28, 2007
For more information about the Micro-Loan Program, contact the representative in your county:
County Representatives |
||
| Name | County | Phone # |
| Larry Lodato | Boone County | (304) 369-7377 |
| Larry Stutler | Lincoln County | (304) 824-3838 |
| Mike Whitt | Mingo County | (304) 235-0042 |
| Rocky Adkins | Logan County | (304) 792-2339 |
| Tommy Adkins | Corridor G Regional Dev Authority | (304) 792-7243 |