Small Business Loans

We have several types of loans to help further the economic development goals of your community. Learn more below or jump to the interest form.

When you are active in your community, the community gives back to you.
— Scotty Bruce, Mi Farm Market
Mi Farm Market in Ellsworth, MI - small business borrower

Mi Farm Market in Ellsworth, MI - small business borrower


What kinds of business loans are available?

1. Small Business/Micro-Enterprise Loans

OppFund provides loans for the start up or expansion of a small business, including:

  • Pre-development costs
  • Acquisition, construction, or renovation of a building
  • Purchase of land
  • Inventory and working capital for a planned business expansion

2. Nonprofit Loans

OppFund provides two types of loans to nonprofit organizations:

  • Facility Loan: For acquisition, renovation, or construction of a building for use in the delivery of your services to low income or disadvantaged people
  • Working Capital Loan: Unrestricted funds to assist with your cash flow needs 

3. Commercial Real Estate Development Loans

OppFund provides loans to both nonprofit and for-profit developers to assist with the revitalization of commercial real estate. These loans can be used for:

  • Pre-development costs
  • Acquisition
  • Construction
  • Bridge financing
  • Short-term permanent financing

4. Technical Assistance Services

OppFund provides small businesses and nonprofits with technical assistance to help you start strong, gain success and continue to grow. Instead of funding, we offer services:

  • Strategic development
  • Business planning (such as relocation, establishing short-term goals, etc.)
  • Accounting
  • Marketing
  • Financing
  • Consulting services

What are the business loan terms?

Business loan amounts range from $10,000 to $250,000.

Terms are flexible with a wide range of loan amortization and maturities (although generally not beyond five years). 

Interest rates are affordable and designed to accommodate the needs of your business.


Am I eligible for a business loan?

We provide loans to individuals, nonprofits and for-profit businesses previously denied credit by another lender and/or those who do not meet traditional underwriting criteria.

  • Nonprofit 501(c)(3) or 501(c)(4) organizations including community development corporations, faith-based institutions, credit unions, and social service agencies
  • For-profit entities (e.g. sole proprietorships, corporations, partnerships, LLCs, or LPs organized in the State of Michigan)
  • Individuals
  • Current borrowers of OppFund dollars, provided the outstanding loans are not in any way delinquent or in default

What are the other business loan rules?

Purpose of the Loan

Eligible loan purposes include:

  • Small business startup or expansion
  • Inventory and working capital to fund planned business expansion
  • Nonprofit facility and/or working capital
  • Development of community facilities and/or daycare centers
  • Pre-development costs (e.g. legal fees, design costs, appraisals, etc.)
  • Commercial real estate option/acquisition, construction, or rehabilitation
  • Bridge and short-term permanent financing

Social Criteria

Loan requests must meet at least two of OppFund's social criteria:

  1. Exhibit community control or local self-determination
  2. Demonstrate alternative business practices (co-ops, worker-owned, land trust)
  3. Provide employment for low-income and/or low-wealth individuals
  4. Empower the disadvantaged, including woman- and minority-owned businesses
  5. Reinvest in decaying area or reduce blight
  6. Use ecologically sensitive approaches
  7. Leverage other resources
  8. Provide opportunities for partnership, collaboration, and/or cooperative endeavors

Security

All loans must be secured. Eligible forms of security include:

  • Real Estate (generally not in excess of 80% of appraised value)
  • Inventory
  • Equipment (will be discounted from appraised value)
  • Accounts Receivable
  • Personal Guarantee

Owner Equity

All loans require an equity investment by the borrower. Loans of $1-$150,000 require 10% equity investment. Loans in excess of $150,000 require a 15% equity investment.


How do I apply for a business loan?

Fill out the form below to receive an application package and to learn current timelines for submissions and approvals. Please note, all applications will require submission of a complete business plan. Technical support is available if you need help!

Name *
Name
Phone Number *
Phone Number
Business Address
Business Address

Updated October 21, 2014


Business Loan Success Stories