Micro Loan – Cooperative Business Assistance Corporation

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Areas Served: Atlantic, Cape May, Camden, Cumberland, Gloucester and Salem Counties in New Jersey and Philadelphia County Pennsylvania.

The Micro Loan Program combines the resources and experience of the U.S. Small Business Administration and CBAC in providing small loans and technical assistance to small businesses in the New Jersey counties of Atlantic, Cape May, Camden, Cumberland, Gloucester and Salem and Philadelphia County Pennsylvania.

Under the MicroLoan Program, the SBA makes funds available to CBAC and they use the funds to make loans to new and existing small businesses.

Under the MicroLoan Program, a small business can borrow up to $35,000 directly from CBAC or up to $105,000 in partnership with other lenders.

Eligibility Requirements Virtually any type of for-profit small business is eligible for the MicroLoan Program.

It must, however, meet the SBAs size standards at the time of application.

Use of Loan Funds MicroLoan funds may be used for working capital or to purchase inventory, supplies, machinery, equipment, furniture, and fixtures.

These funds may not be used to purchase real estate or provide for down payments on equipment or vehicles otherwise leased or financed by others.

With limited exceptions, the funds can not be used to refinance existing debts.

Loan Terms Under the MicroLoan Program, the maximum direct loan amount is $35,000 with the average loan around $15,000. The maximum loan amount in partnership with other lenders is $105,000. The maximum loan term is six years.

Loan term varies according to loan size and use of funds.

Under the MicroLoan Program, CBAC offers favorable interest rates.

Collateral Requirements CBAC sets collateral requirements in accordance with credit standards for the MicroLoan Program.

In most cases, loans are at least partially collateralized by equipment, contracts, inventory or other property.

CBAC also requires personal guaranties.

Contact Information
Cooperative Business Assistance Corporation
Address: 328 Market Street
City: Camden
State: New Jersey

Website: http://www.cbaclenders.com/loan.html#micro

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