A MicroLoan can make a big impact.
MicroLoan applicants must submit an application form, demographics information, personal financial statements, business plan with projections, and other supporting documents to be considered for financing.
MicroLoans range from $2,500 to $50,000 and can be used for:
- 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
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
- Will invest the capital to improve your business
- Have a personal guarantee and/or can provide evidence that you can repay the loan
- 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 $75 application fee required of all applicants and a $200 fee payable at loan closing.
Your company must be:
- 51% owned or led by a woman considered to be low- to moderate-income
- 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 we have funds available to loan)
- Majority owned by a resident of Michigan
- Planning to 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
To be considered for the MWF MicroLoan Fund, you’ll need to supply the following information/documents:
Business Plan Overview
Your plan should show a sense of enthusiasm and optimism but be realistic and present enough information to engage the reader. The business plan should be a maximum of 10 pages and include:
- Company Introduction. Describe your company and the unique aspects of your business. Elements generally covered in this introduction include mission/vision for your company; overview – history, location, hours and legal structure
- Product/Service Description. Outline your product/service and explain what makes it unique
- Market. Industry analysis – scope, nature, size, growth, trends, customers’ profile, geography, buying behavior
- Market Analysis. Define the size of your market, your target market and the growth potential of the market
- Competition. Research who your competition is and what makes your product/service different. Explain who, what, where, how, strengths, weaknesses, opportunities, threats (SWOT analysis) of your product/service and that of the competition
- Business and Revenue Model. Outline how your company will make money over the next three years
- Operations. Describe who will run the business and how will it be managed
- Management and Founder. Provide resumes for key employees and explain their qualifications for their responsibilities
- Use of Funds. Provide detail as to how funds will be used. Be sure to include precise detail and not just guesses
- Strategy for Growth and Loan Repayment. Show in your financials how loan will be repaid and how your company will grow
Three (3) Year Financial Projections
- Income Statement
- Cash Flow Statement
- Balance Sheet
- Management Resume (1 page per person)
- Personal Financial Statement(s)
- Three (3) Years Personal Federal Tax Returns
- Three (3) Years Complete Business Tax Returns, if applicable
- Copy of government-issued identification (i.e. driver’s license)
- 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
NOTE: A credit check and background check will be conducted as part of the screening process.
After submitting your application
Once your loan request has been moved to the application process, please allow 4-6 weeks for review of all uploaded documents. You may be required to supply additional information or explanations for information received.
If your application passes the initial screening (credit check, financial projections, background check, etc.) by our loan fund officer, it will be presented to our Loan Advisory Committee for approval.
Advisory Committee members will discuss applications monthly and make a recommendation for approval, request more information, deny applicant or refer applicant to another lending organization.
Applicants may be asked to clarify submitted information, provide additional information or achieve additional milestones for final decision.
Applicants will be notified of receipt of their application and status in the process.
If you have any questions regarding the Michigan Women’s MicroLoan Fund, please email email@example.com or call 313.962.1920.