What is the Madison County Micro Loan Program?
|A loan program created by the Madison County Treasurerís Office to
satisfy the overall need for capitalization for new and
existing small, private sector businesses in Madison County. The Madison
County Treasurerís Office has a role in promoting
economic development and the economic well-being of Madison County and
seeks to create job opportunities within the county. The Treasurerís
Office has partnered with Justine PETERSEN, a not-for-profit
organization, and TheBANK of Edwardsville. Justine PETERSEN will be
responsible for the overall administration of the Micro Loan Program by
low interest loans with substantial technical assistance. TheBANK of
Edwardsville will serve as the programís financial sponsor as part of
its commitment to the small business community. The loan program is
based on donations received
from TheBANK of Edwardsville that Justine PETERSEN will use to establish
a ten year revolving loan fund.
Who is Eligible to Participate in
the Micro Loan Program?
Individuals who may otherwise be unable to secure financing from
traditional lenders and need assistance in accessing safe and affordable
capital to expand or create a small business in Madison County.
How to Participate in the Micro Loan Program?
Justine PETERSEN approves the loans through an application process
which includes creating and submitting a business
plan. Counselors working with the program are available to assist
applicants with this process.
What are the terms of the loans?
A flexible loan package will be arranged to meet the individual
business ownerís specific needs. Borrowers are required to make
affordable monthly payments for the term of the loan, which may not
exceed 6 years.
How much can a qualifying business owner borrow?
Loan applications ranging from $250 up to $35,000 will be
considered. Loan approval is based on the five ďCísĒ of lending
(credit, capacity, collateral, capital and character).
|Loan Funds may be used for:
- Working Capital
|Loan Funds may not be used for:
- Refinancing existing debt
- Leasehold Improvements
- Property Acquisition
What is the interest rate?
The loan interest rates are fixed and range between 8.625 Ė 9.5%.
Are there any fees associated with the Micro Loan Program?
Yes, there is a $100.00 loan origination fee that is due at loan
closing. A technical assistance fee of $8.33 per month is also
applicable once the loan is approved.
How are Loan Funds distributed?
Our program administrator, Justine PETERSEN, makes all checks
payable directly to the third-party vendor. Borrowers must provide proof
of purchase such as written invoice verification.
Are any additional services available to participants of the
- One-on-one counseling and technical assistance
- Credit building strategies - Strong personal financial stability
supports sound business financial management
and therefore, all counseling begins with a review of personal
credit history and a plan to address barriers to safe
and affordable financing.
- FDIC Money Smart Curriculum
- Business Planning through a simple questionnaire to assist
existing informal businesses that do not have written business plans
to transition from informal to formal businesses
- Micro loan origination
- Post-loan technical assistance for those that struggle to meet
their business plan benchmarks and for those that are expanding
Important Stats Of Justine PETERSENís Assisted Businesses:
- 87% of Micro Loan recipients started and still operate a
business after one year
- 92% of the businesses experienced an increase in business
- 82% of the businesses have an increase in ownerís draw
Considering starting a business in Madison County? Begin by meeting
one-on-one with a Justine PETERSEN counselor who will assist you through
the business planning process.
- STEP 1 - Go online to
- STEP 2 - Download and complete micro loan application and
business plan questionnaire
- STEP 3 - Schedule an appointment with one of Justine
Senior Loan Counselor
|Madison County Treasurerís