Small Business Loans
OVERVIEW
The purpose of Detroit Development's Small Business Lending Program has been to support the growth of Detroit-based businesses, particularly those owned by entrepreneurs of color and by women. It targets small businesses with growth potential and management insight that lack sufficient collateral or owner equity to qualify for financing from mainstream lenders.
WHAT
WE
DO
Contractor Lines of Credit
CRITERIA, LOAN SIZE, AND TERMS
To qualify for a Small Business Loan, projects should meet the following criteria:
Business must be located in the City of Detroit
Have annual sales of at least $100,000; and have fewer then 50 employees
Have been in existence for at least 12 consecutive months
Have demonstrated growth potential and have the ability to continue to grow and retain, or create, new jobs
Have been unable to obtain sufficient financing from traditional lending sources
Small business loan amounts range from $50,000 to $150,000*
Most loans will have terms of 24 to 84 months, depending on use of funds
*Exceptions may be made to the length of time in business and annual sales criteria for franchises, or in other situations approved by the loan committee.
USE OF PROCEEDS
Detroit Development's Small Business Loan proceeds may be used for most business purposes, including the following:
Working capital for expansion
Equipment financing
Accounts receivable financing
Business acquisition
Marketing/New product development
Sales expansion
Physical plant expansion
Improvements to manufacturing systems
