SCTDD Microenterprise Loan Fund
for Small and Micro Businesses
Administered by SCTDD
The South Central Tennessee Development District (SCTDD) Microenterprise Loan Program (funded by a loan from the Small Business Administration and a local bank) can provide loans for small and micro businesses in the thirteen county service area of the South Central Tennessee Development District. These funds may be used in conjunction with other financing sources and can be used only to fill the gap between the amount of financing required for a project and what is available from other sources (both equity and debt).
Funding Source: U. S. Small Business Administration & Local Banks
Administration and Approval: Revolving Loan Fund Committee - South Central Tennessee Development District and the SCTBDC Board of Directors, which serve as a loan review committee.
Applicant: Any small for-profit business that meets the Small Business Administration size standards with a sound business proposal and can demonstrate a lack of available financing.
Interest Rate: Ten percent (10%) per annum fixed.
Terms: Machinery and Equipment - 2 to 6 years
Working Capital - 2 to 3 years
The maximum limit for any SCTDD/SBA Micro Loan is $35,000 per project, but most loan approvals are between $5,000 and $15,000.
Items that must be supplied by the business being assisted:
Profile sheet on the business including name, address, legal organization, years in business, accountant, nature of product, and description of the project.
Employment Projections including the number and types of jobs to be created by the project.
Letter of Intent detailing reasons for the proposed project, commitment to follow through with the project, time frame, and reason for the need of the SCTDD/SBA micro loan requested.
List of all Sources and Uses of funds for the project.
Commitment letters from all other sources of financing for the project.
Detailed cost estimates for each component of the project.
Historical financial statements of the business for the last three years including income statements and balance sheets and an interim financial statement dated within 90 days of the application.
Pro forma financial statements including pro forma balance sheet as of the completion of the project, pro forma balance sheet at the end of Year 1 and Year 2, income statement for the first 2 years, and monthly cash flow for the first twelve months of operation.
Banking and credit references on the business and the principals.
Personal financial statements of the owners.
Resumes of owners and top management of the company.
Marketing plan including company history, market analysis, and specific marketing and sales activities or promotions planned to insure that there is a demand for the increase in production as a result of the proposed project. In some cases, where the market appears questionable, letters of intent from customers may be requested.
Organizational chart.
List of all stockholders/owners of the business and percent of ownership.
For further information, an application or questions about the uses of the SCTDD/SBA Micro Loan Program, call Doug Williams at the South Central Tennessee Development District, P. O. Box 1346, Columbia, Tennessee, 38402, at (931) 381-2040.