Funding Big Dreams
Sometimes small loans can fund big dreams and the Ozarks Small Business Incubator is committed to being a part of that with the OzSBI Microloan Fund. Our low-interest microloans of $5,000 to $50,000 are available to small business owners in Douglas, Howell, Oregon, Ozark, Shannon, Texas and Wright counties, as well as Mammoth Spring, AR.
Microloans may be used as a direct loan, seed capital or gap financing combined with other lending sources. They are designed for individuals who are unable to secure capital from traditional lending institutions due to poor or little credit history, income requirements, or atypical lending requests; or for those who need gap financing for larger purchases, such as real estate. Whether you need startup funds, inventory or equipment, or are growing or expanding your business, consider if an OzSBI Microloan is right for you.
Microloan Uses Include:
Start or expand a business
Increase working capital
Purchase inventory and supplies
Pay for educational training
Purchase equipment, furniture, and fixtures
Purchase real estate (as gap financing with local banks)
Helping Businesses Grow
Microloans from $5,000 to $50,000 are available through the OzSBI Microloan Fund. The maximum term of the loan is 10 years. Loans are available to provide up to 80% of the total project cost. All loans are made at the Wall Street Journal Prime Rate and are locked in when the loan is approved.
Applicants must complete the OzSBI Microloan Fund application, agree to a credit report, provide a personal financial statement, and pay a $20 processing fee for the credit check. This documentation will be reviewed by OzSBI staff to determine if the applicant meets the minimum eligibility requirements of the OzSBI Microloan program.
OzSBI Microloan Review Committee’s regularly scheduled meetings will be held on the third (3rd) Thursday of each month. However, should the need arise, special meetings on other dates and times, may be called at the discretion of the committee. Applications must be received AND approved by OzSBI staff for submittal to the Microloan Review Committee on or before the first (1st) of each month to be eligible for that month’s meeting.
The Microloan Fund Application is in a fillable PDF format. OzSBI staff prefers to have these forms filled out electronically and either emailed to firstname.lastname@example.org or printed and mailed. If you are unable to fill it out using your computer, we will accept written applications.
Review of Business Plan
If deemed an eligible candidate for an OzSBI Microloan, OzSBI will ask the applicant to complete a Business Plan Questionnaire. If desired, OzSBI staff will assist the applicant in completing the Business Plan Questionnaire and compiling all necessary documentation for review by the Microloan Review Committee. The Committee will make the final decision on what loans are approved, the terms, collateral required, etc.
The Business Plan Questionnaire is in a fillable PDF format. OzSBI staff prefers to have these forms filled out electronically and either emailed to email@example.com or printed and mailed. If you are unable to fill it out using your computer, we will accept written forms.
Documentation required to accompany your loan proposal may include:
- Three letters of reference (personal and business) with contact information. Letters of support may be included.
- Proof of Outside Employment
- Documentation of previous investment over 9-12 months
- Other lender participation letter stating the terms and conditions of its participation (if applicable)
- Tax Return for 2 previous years
- Legal structure documents (Articles of Organization, Operating Agreement, Articles of Incorporation, Bylaws, etc)
- Copy of Fictitious Business Statement
- Partnership Agreement
- Lease, if applicable
- Franchise Agreement, if applicable
- Purchase Agreement for equipment being purchased with loan funds
- Copies of Business Licenses and Registrations required for you to conduct business
Approval of your loan request depends on how well you present your business and your financial needs to the Microloan Review Committee. The best way to improve your chances of obtaining a loan is to provide a clear and detailed narrative on the application and business plan questionnaire. Before you begin, there are three things that you need to be able to clearly address:
- How much money you need?
- How your business will use the money?
- How you will repay the loan?
Application & Business Plan Questionnaire
The following documents are in a fillable PDF format. OzSBI staff prefers to have these forms filled out electronically and either emailed to firstname.lastname@example.org or printed and mailed. If you are unable to fill it out using your computer, we will accept written forms.