Loan Amounts
Currently, our maximum loan amount for all businesses is $50,000. Established businesses-those with at least a year of sales and who have filed business income taxes at least once-are eligible to apply for up to the entire amount. Startup businesses with a written business plan can apply for up to $15,000; those without a business plan are only eligible to apply for up to $2,500. Our minimum loan size for all classes of loans is $500. See the underwiting criteria section for special notes on startup businesses.
When applying for a loan, it is always the best policy to honestly and carefully evaluate your financial needs instead of simply asking for the maximum amount of money available. We will work to make sure that we feel comfortable about the total loan amount before approving it; keep in mind: the longer we have to work to determine the proper amount, the longer the time to process the application!
Interest Rates
Rates are consistent with micro-lending industry standards and are determined on a case-by-case basis as we process the loan application. Once the rate is set, it will remain fixed throughout the life of the loan. The interest is amortized on a 360 day basis and there is no pre-payment penalty.
Loan Terms
Our loan terms can go anywhere from 3 months to 6 six years. The terms will vary depending on the size and use of the loan as well as our own internal requirements. Working capital loans are the shortest--usually no more than three years for pure working capital loans. Pure equipment loans can receive the longest term. Most loan clients are in need of some mixture of the two, and end up with either a 3- or 4-year term.
Use of Funds
Generally, the loan funds can be used for working capital (payroll, marketing, licenses, etc.), inventory, supplies, furniture, fixtures, or equipment. On a case-by-case basis, the funds may be used for renovation of leased property. They cannot be used in the purchase of real estate. BiGAUSTIN microloans also cannot be used to refinance existing debt, including credit cards, nor are they available for personal use.
Fees
BiGAUSTIN loan clients pay the following fees:
$15 per signatory for credit analysis;(now waived)- Closing/filing fees due at loan closing (typically $28);
- $100 contribution fee once a year through the life of the loan;
- The total interest charge;
- $15 for every late payment, and $20 for every returned check or automatic withdrawal denied for lack of funds (NSF-insufficient funds).