Microloan Funds
The Microloan programs are locally controlled sources of capital used to finance startup, expanding businesses and entrepreneurial projects. The Microloan programs are available depending on project needs. All projects must meet program guidelines and be creditworthy.
Source of Funds
Dothan-Houston County Microloan Fund
The Dothan-Houston County Microloan Fund was developed through a joint effort of the Dothan Area Chamber of Commerce, SEARP&DC, area lending institutions and the Wiregrass Foundation.
USDA/Rural Development Microloan Fund
The USDA/Rural Development Microloan Fund is funded through the United States Department of Agriculture/Rural Development.
Use of Funds
- Land, buildings and equipment.
- Working capital.
Loan Amounts
- Loans are available from $4,000 to $20,000
Interest Rates
- Range from New York prime plus 2% to 4%.
Maturity Term
- Loan terms available up to 5 years.
Equity Requirement
- Businesses must provide between 10% and 25% of the project cost in cash equity.
Job Creation
- Must create or retain jobs.
Eligible Borrowers’ and Fees
- For-profit industries and businesses.
- Borrower pays all closing costs and fees associated with program.
