• To be qualified under Micro sector/small business the applicant must satisfy the following conditions:
i) Owner managed;
ii) Number of persons employed less than 25; or
iii) Manufacturing area less than 4,000 sq. ft; or
iv) Investment in equipment less than $135,000; or
v) Total annual sales less than $337,500.
Use of Funds:
• Micro-sector loan could provide funding for all aspects of business including working capital. Financing may be used for startup activities or expansion of existing operations.
• Maximum loan amount $50,000.00.
• Minimum loan amount $1,000.00.
• Maximum loan amount – No stated maximum.
• Minimum loan amount – 10,000.00 stated minimum.
• The bank may consider security from the following:
Legal mortgage, bill of sale, lien on sale, personal guarantee(s), insurance, cash deposit, etc.
• 7% – 11% p.a.
• The maximum repayment period is 15 years, including a grace period not exceeding 3 years.
• The repayment would be structured on a case by case basis and it is related to the revenue stream of the project.
• The loan may cover up to a maximum of 80% of the financing required for new projects; and up to 100% of the estimated costs of expansion, diversification etc. provided that the sponsors equity in the business represents no less than 20%.