Southern Mississippi Planning and Development District administers a Minority Revolving Micro-Loan Program funded through MDA, Minority Division, specifically for socially and economically disadvantaged minority and women-owned businesses. The terms of the loans are extended and the interest rates are fixed, which in turn provides the borrower with additional operating capital throughout the life of the loan.
Requirements:
60% of the business must be owned by a minority or woman. At least 50% of the ownership must be by a resident of the State of Mississippi. The business must be a for-profit entity. Job creation, other than the owner(s), must result from the business start-up or expansion. The business must be certified by the State of Mississippi as a Minority Business Enterprise.
Criteria:
Borrower must inject a minimum of 5% of the total project cost as equity. Minority Revolving Micro-Loan Program can finance up to 95% of the total project cost, not to exceed $35,000. The minimum loan amount is $2,000. SMPDD must have a first lien on collateral.
Eligible Area:
The business must be located within SMPDD's 15 county area.
Fees:
Applicant is responsible for a $100 non-refundable application fee, 1% origination fee($100 minimum), and must pay closing costs.
