Micro loans
PURPOSE OF THE MICRO LOAN:
The Tennessee Department of Community and Economic Development Business Services Division supports two major sectors of business and industry in Tennessee. The division consists of two offices that assist businesses -- the Business Enterprise Resource Office (BERO) and the FastTrack Training Office.
The purpose of the TN-ECD-BERO Micro Loan Fund is to support start-up, growth and expansion of micro-enterprises in rural Tennessee. A micro-enterprise is defined as a for-profit entity with five or fewer employees, one of whom is the owner of the business. Typically, a micro-entrepreneur is not able to access a loan from the commercial banking sector, can effectively utilize a loan of $10,000 or less to start or expand a business, and is generally defined as marginalized due to income, race, gender, disability or geographic location. The interest rate is typically several points below Prime.
WHO IS ELIGIBLE?
The business must:
- be located in a rural area as defined by the USDA
(McMinnville is a rural area as defined by the USDA); and - have 5 or fewer employees, including the owner
The owner must
- live in a rural area as defined by the USDA, and
- complete entrepreneurship training, develop a business plan, and
- be unable to access a loan from the commercial banking sector.
SCOPE OF THE LOANS:
- Fixed assets and working capital loans are accepted (preference toward fixed assets), but a combination may also be made
- Minimum Loan is $500.00
- Maximum Loan is $10,000.00.
Borrowers must be willing to attend business training workshops.
For more information, please contact:
Wisty Pender
BERO Enterprise Specialist
615.532.1926
Email: Wisty.Pender@state.tn.us
Website: BERO
Download an Application: BEROMicroLoanPkg.pdf