Overview of Michigan Women's Microloan Fund
Welcome to the Michigan Women's Microloan Fund. Please read all the information on this page before applying for a loan, as it will assist you in the application process.
The Michigan Women's Microloan Fund is a financing program available to women entrepreneurs and small business owners. It is often difficult for newly formed but promising businesses to obtain financing; the Michigan Women's Microloan Fund is designed to meet that need.
To receive an application to apply, contact Han Peng, firstname.lastname@example.org .
Microloans range from $2,500 to $40,000 and may be used for any of the following:
- Purchase of inventory
- Working capital
- Start-up costs
- Purchase of equipment or leasehold improvement directly related to the growth of the business
- Loan subordination
- Business acquisition (with expectation of 50% financing by applicant)
- Contract financing
Applicants are required to complete the application form, demographics information, personal financial statements, a business plan with projections, and other supporting documents. You will be required to pay an application fee of $75.
When reviewing your application, we look at a number of factors including if you:
- Have invested your own funds into the business.
- Need the capital and are unable to obtain a loan from a commercial bank.
- Can invest the capital to improve your business.
- Have a personal guarantee and/or can provide evidence that you can repay the loan.
- Are willing to repay the loan and have the experience and passion to run a successful business.
- Are locating your business in an underserved community.
- Are considered to be in the low- or moderate income level.
There is a closing fee of $200 that is payable at the close.
Company must be:
- 51% owned or led by a woman considered in the low to moderate income range
- Legally established and registered with the State of Michigan
- A privately held company
- A small business as defined by the Small Business Administration
- Based in Michigan (Please note that the majority of our funds available for loans are for companies based in, near, or serving Detroit. If your company is outside of Detroit, please email us with your location before you apply so we can let you know if funding is available.)
- Majority owned by a resident of Michigan
- Use funds for future expenses. Loan funds may not be used for prior expenses, repayment of loans or capital contributions, investments, payments or distributions to founders, principal, owners or affiliates of the company
Your completed application should include the following:
- Microloan Application Form
- Demographics Information
Business Plan Overview
Your plan should show a sense of enthusiasm and optimism, but be realistic and present enough information to engage the reader.
Detailed Business Plan (10 pages maximum):
- Company Introduction - This is a description of your company, and an opportunity to apply an
“elevator pitch” to describe the key or unique aspects of the business. Elements generally covered in this introduction include mission/vision, overview - history, location, hours, and legal structure.
- Product/Service Description - Describe any special features and any benefits the customer can expect to gain by purchasing your product or service.
- Market - Include the highlights of your market research; Industry analysis-scope, nature, size, growth, trends; customers’ profile, geography, buying behavior.
- Market Analysis - Size, trends, primary and secondary target markets, growth potential.
- Competition - Who, what, where, how, strengths, weaknesses, opportunities, threats (SWOT analysis).
- Business and Revenue Model - A description of how a business will earn income, produce profits and generate a higher than average return on investment.
- Operations - Describe how the business will run.
- Management and Founder - Describe how organizational responsibilities will be assigned including the management team. Include resumes for key employees.
- Use of Funds - Detail as precisely as possible how loan will be used.
- Strategy for growth and loan repayment- How will you grow your business and repay loan
Three (3) Year Financial Projections
- Income Statement
- Cash Flow Statement
- Balance Sheet
- Management Resume (1 page per person)
- Personal Financial Statement(s) (Use the template in the REOURCES tab)
- Three (3) Years Personal Federal Tax Returns
- Three (3) Years Complete Business Tax Returns, if applicable
- Copy of Government Issued Identification (i.e. Michigan State ID)
- Copy of lease, deed, or property title, if applicable
- If a non-profit, copy of IRS tax exempt letter
- Certificate of Good Standing with the State of Michigan
- Explanation of credit history hardships, if applicable
- Two recommendation letters, if applicable
- Copy of The Women’s Business Enterprise Certification, Business License, Incorporation documents, Industry Related Licenses/Permits, and/or City Licenses, if applicable
To Get Started
To learn how to apply for the Michigan Women's Microloan Fund, please attend one of our Microloan Orientation events. The orientation is held monthly. Contact Han Peng, email@example.com for more information.
Applications will be accepted and reviewed as received.
If application passes initial screening (credit check, financial projections, background check, etc.) by our Fund Manager, it will be presented to our Loan Advisory Committee for review. If we are unable to submit your request to our Committee, we will work with you or refer you to our community partners for further support.
Advisory Committee members will discuss applications every 30-60 days and make a recommendation for approval, request more information, deny applicant or refer applicant to another lending organization.
Applicants may be asked to clarify or provide additional information or achieve additional milestones for final decision.
Applicants will be notified of receipt of their application and status in the process.
The following will be conducted as a part of the screening process:
- Credit Check
- Background Check
If you have any questions regarding the Michigan Women's Microloan Fund, please contact:Source: www.miwf.org
Category: Payday loans