Small & Minority Owned Business Loan. Lending for the acquisition of property is excluded from appropriate uses of funds.

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What’s SMOB?

The Small or Minority-Owned Business Assistance Program offers a platform that is statewide fosters the rise and growth of little and minority-owned companies in Tennessee. The Program places focus on the preparatory phase of beginning or expanding a small business by making sure adaquate planning and funding are taken into account.

The SMOB Program provides assist with Qualifying Businesses in two areas that are primary Program Services and Loans.

“Program Services” provides use of a myriad of technical help, training, and services that are consulting Qualifying Businesses that could or might not make application for Loans beneath the system.

“Loan” means that loan for the project that is specific that the applicant has requsted Program Assistance. Listed below are acceptable purposes which is why a loan might be produced:

Lending for the purchase of real-estate is excluded from appropriate uses of funds.

Program Function and Eligibility

The Small and Minority-Owned Business Assistance Program is made by the Tennessee General Assembly by Chapter 830 for the Tennessee Public Acts of 2004. This system was designed to support outreach to brand new, expanding, and current Qualifying companies in Tennessee which do not have access that is reasonable money areas and conventional commercial financing facilities.

A Qualifying Business is a Sole Proprietorship, a Partnership, a Limited Liability Partnership, a Limited Liability Corporation, or every other included entity eligible to accomplish company in Tennessee; and is situated in and keeps operations in Tennessee with yearly gross receipts of not as much as $4,000,000.

Companies or businesses which are Ineligible for Program Assistance are:

Non-profit businesses.

Insurance Providers.

Real-estate Contractors or Developers.

Golf clubs or similar businesses that are entertainment-Oriented.

Company which do not produce or provide jobs.

Companies perhaps maybe not included or found in Tennessee.

Companies that don’t meet with the lending requirements of this designated organizations that are qualifiedLenders) for every single area regarding the State.

Small and Business that is minority-Owned Assistance (SMOB)

can be acquired to small enterprises with the 13 counties that the SCTDD solutions. Included in these are: Bedford, Coffee, Franklin, Giles, Hickman, Lawrence, Lewis, Lincoln, Marshall, Maury, Moore, Perry, and Wayne.

The Small and Minority-Owned Business Program defines that loan as Program Funds lent for a certain task for that the Applicant has required system support. For a company to be involved in the mortgage portion of this system it should meet up with the SMOB Program requirements, also, the requirements associated with the designated lender serving their particular area associated with State. Lender critera differs from region to area, the Small and Minority-Owned Business Program criteria for loans consideration is really as follows:

Loan Requirements

1. The after criteria shall apply whenever Qualified Organizations evaluate Applications for Loans:

(a.) optimum Loan Amount: a hundred twenty-five thousand bucks ($125,000).

(b.) Loan Interest Rate: might be a hard and fast rate or variable price, give you the variable price will not meet or exceed the rate that is maximum.

(c.) Maximum Loan rate of interest: 2% on the “Prime Rate” as posted into the Wall Street Journal.

(d.) Minimum Loan rate of interest: 2% beneath the “Prime Rate” as posted when you look at the Wall Street Journal .

( ag e.) Fees: later costs and other costs could be imposed in respect by Tennessee legislation.

(f.) Term: advised repayment durations for loans are since followed:

1. Gear, the lower of five (5) years or helpful life;

2. Performing capital, materials, and inventory, three (3) years; and

3. Other business-related task: Lesser of five (5) years or life that is useful.

(g). Collateral and protection: Both company and personal security may be used as safety for a financial loan.

(h). Guaranty Agreement: Personal guarantees from all principal owners shall be acquired.

For a totally free assessment that will help you determine if the program is appropriate for you personally as well as your company, please contact us utilizing the type below.