Micro Loan Program

The ML program provides small loans and technical assistance to businesses in DeKalb, Gwinnett, Rockdale, Henry, Clayton, Cobb, Fulton, Fayette, Newton and Douglas counties. It combines DEBCO's resources and experience with those of the U.S. Small Business Administration (SBA).

The SBA makes funds available and DEBCO acts as an intermediary lender, making loans of up to $10,000 available to new and existing small businesses. DEBCO also provides management and technical assistance to help ensure success.

Micro Loans are direct loans from DEBCO and are not guaranteed by the SBA. Interest rates vary.

Eligibility Requirements

Virtually any type of small business in DeKalb or an adjacent county is eligible for a Micro Loan if it:

• Has less than $500,000 in annual sales
• Has fewer than five employees
• Can provide a letter stating inability to obtain credit from other lending sources

The form of the business, whether a proprietorship, partnership or corporation, is not a determining factor. It must, however, meet the SBA's size standards at the time of application. Generally businesses applying for this type of loan will fall well within these standards. Not-for-profit childcare centers are also eligible to apply.

Eligible Uses

Micro Loan funds may be used for working capital or to purchase inventory, supplies, furniture, fixtures, machinery and equipment. Funds may not be used to purchase real estate or to provide a down payment on real estate.

Loan Amounts

The maximum Micro Loan amount is $10,000. The maximum term may vary according to the size of the loan, the planned use of the funds, the requirements of DEBCO, and the needs of the borrower.

Credit Requirements

A Micro Loan applicant must have good character, a strong commitment to his/her business idea, and a credit history that provides reasonable assurance that the loan will be repaid. The applicant should also have some management expertise or be willing to participate in training designed to strengthen management skills.

Interest Rates

Negotiable, as determined by project needs, with a minimum rate of 5 percent and a maximum rate that is below market.

Collateral

In most cases, loans are at least partially collateralized by equipment, inventory or other property. DEBCO may also require personal guaranties and personal assets.

Applying for a Micro Loan

Contact DEBCO or your local SBA district office to find out if there is a Micro Loan intermediary lender in your area. The intermediary lender will provide information on applying for a loan and receiving technical assistance.

Micro Loan Package (.PDF)
For businesses in DeKalb, Gwinnett, Rockdale, Henry, Clayton, Cobb, Fulton, Fayette, Newton and Douglas counties