3 • Widowed spouse of a service member/veteran who died
BUSINESS FINANCING DC DOING BUSINESS GUIDE 2018/2019 47
during service or of a service-connected disability
THE SBA MICROLOAN PROGRAM provides very small loans
to startups and newly established or growing businesses.
Funds are made available to nonprofit community based
lenders (intermediaries), who are then authorized to
make loans to eligible borrowers. The average loan
is around $13,000, although the maximum amount
allowed is $50,000, and the term can be up to six years.
While these microloans can be used for working capital,
stocking inventory, and purchasing equipment, they
cannot be used to buy real estate. The intermediary may
or may not allow the borrower to refinance debt with
such funds.
A microloan may be good if any of the following apply:
• Business is a startup or has less than two years of financial
data and tax history
• Less than perfect credit
• Need for a loan of $50,000 or less
• Business is working on a larger project and needs
additional capital in order to complete the project
• Business owner who does not have a social security
number*
Microloan applications should be made to local
intermediaries, as all credit decisions are made at the local
level. For a current listing of participating intermediaries,
visit sba.gov/partners/lenders/microloan-program/list-lenders
and search by state in the drop-down menu.
Following is a list of DC-area intermediary lenders, as of
July 2018:
ECDC ENTERPRISE DEVELOPMENT GROUP
(703) 685-0510 · hwelday@ecdcus.org
LATINO ECONOMIC DEVELOPMENT CENTER
(202) 588-5102 · lending@ledcmetro.org
LIFE ASSET INC.
(202) 709-0652 · contactus@lifeasset.org
WASHINGTON AREA COMMUNITY INVESTMENT FUND
(202) 529-5505 · info@wacif.org
CDC/504 LOAN PROGRAM
Through its 504 Loan Program, the SBA partners with
certified community development companies (CDCs)
to provide long-term, fixed-rate financing aimed at
encouraging economic development within a community
by investing in expansion and modernization. The loan
can be used for most project costs. The goal is to provide
immediate and long-term benefits so that businesses
can focus on growth. 504 Loan recipients must create or
retain one job for every $65,000 guaranteed ($100,000 for
manufacturers) or meet SBA public policy goals. There
is no specific maximum project size, but the SBA portion
of the loan cannot exceed $5 million, or $5.5 million for
manufacturers and energy efficient projects.
The cost is covered in three parts: a private sector
loan covering 50 percent of the project cost, an SBA
loan covering 40 percent of the project cost, and a
10 percent equity contribution from the borrower.
Eligibility is determined by the type of company and
the size and income standards of the SBA:
• Companies must be for-profit (no nonprofit, passive, or
speculative activities).
• Tangible net worth must not exceed $15 million after
federal income taxes.
• Average net income must not exceed $5 million
after federal income taxes for the two years prior to
application. For a current list of SBA-approved CDCs, visit
sba.gov/partners/lenders/cdc504-loan-program/list-cdcs
and search by state in the drop-down menu.
Below are the three DC-area 504 lenders, as of July 2018:
BUSINESS FINANCE GROUP
3930 Pender Drive, Suite 300, Fairfax, VA 22030
(703) 352-0504 · businessfinancegroup.org
CHESAPEAKE BUSINESS FINANCE CORPORATION
1101 30th St NW #500, Washington, DC 20007
(202) 625-4373 · chesapeake504.com
FSC FIRST
1801 McCormick Drive, Suite 300, Largo, MD 20774
(301) 883-6900 · fscfirst.com
*Some microlenders have access to private funds to lend specifically to non-US Citizens. These loans are not made with SBA resources.
/list-lenders
/list-cdcs
/businessfinancegroup.org
/chesapeake504.com
/fscfirst.com
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