Answers: Q1. What
is a micro loan?
A “micro loan” is commonly defined as a small business loan to businesses often called microenterprises. A “micro enterprise” or “micro business” is commonly defined as a business with fewer than five employees having capital needs of under $35,000.
Q2. Who
can apply?
Anyone who is a legal resident (U.S. Citizen, Permanent Resident or a Refugee/Asylee) with a business in the DC metro area can apply for a loan.
Q3. What
type of businesses can be funded?
EDG funds both start-up and existing business. EDG has funded Beauty Stores, Cleaning Services, Computer Stores, Fitness Franchises, Restaurants, a Framing Shop, an Art Gallery, a Doggie Daycare and many others. EDG does not fund Alcohol/Tobacco or Adult Entertainment establishments.
Q4.What
is the maximum amount that can be borrowed?
The maximum amount that EDG currently funds is $35,000. The minimum is $500.
Q5. What
are eligible uses of funds?
Funds can be used for almost any legitimate business expenses including the purchase of equipment, inventory, rent, working capital, marketing, advertising, accounting services, fixed assets and other miscellaneous business expenses. Loan funds cannot be used for refinancing debt, the purchase of real estate, speculative activities, investment or illegal activities. Please speak with a Loan Officer for further details.
Q6. Does
a person need perfect or good credit?
Applicants do not need to have perfect credit; however, all unresolved credit issues should be addressed. EDG staff will request documentation verifying resolution.
Q7. Is
a business plan necessary to apply for a loan?
EDG requires a business plan for all applicants. The business owner will need a roadmap as much as we need to how you plan to operate the business in a manner that will earn sufficient profit to repay the EDG loan. EDG is not looking for a lengthy or complex document but we would like to see the basic operating assumptions for the business and how those assumptions will be translated into projections of sales, expenses and profits.
Businesses that have been operating at least 12 months need to provide tax returns and/or financials.
