The Minority Business Enterprise Micro-Loan Program

Financing Requirements

To be eligible for funding under this program, the business must be certified as a minority business by the State of Mississippi.

The program may be used to finance 100% of a total project.

The total project amount eligible for consideration under this program will be a minimum of $2,000.00 up to a maximum of $35,000.00.

The funding from this program is not intended to be used as GAP financing and the proceeds shall not be utilized with financing from any other source.

The MBE Micro-Loan Program requires a personal guarantee from the borrower and anyone with 20% ownership of the business.

Documentation will be required to show that the project will create and or retain full-time jobs.

Eligible Categories of Business Financing

Funding may be used for the startup or expansion of businesses.  The owner must be a resident citizen of Mississippi; if the business is a corporation or partnership, at least 50% of the owners must be resident citizens of Mississippi.

The owners and managers of the business must be 60% minority as defined by the small business act and shall include all women.

Eligible Project Costs

Purchase of land, purchase of inventory, working capital, purchase of machinery and equipment, purchase and/or renovations of buildings.

Collateral 

The collateral will include a first lien on all assets acquired with the micro-loan proceeds.  The collateral may also include liens on other business and/or personal assets as deemed necessary to adequately secure the amount of the micro-loan.

Maximum Loan Terms

The terms allowed will be determined by the loan amount and will relate to the type of collateral offered to secure the micro-loan.

  • $2,000.00 to $5,000.00 - Three (3) Years
  • $5,001.00 to $10,000.00 - Four (4) Years
  • $10,001.00 to $35,000.00 - Five (5) Years

Interest Rate

The interest rate will be the Federal Reserve Discount Rate plus 4% to be fixed for the term of the micro-loan.

Fees

The GTPDD will charge an origination fee of 1% of the micro-loan amount for loans from $10,001.00 to $35,000.00.  The origination fee will be $100.00 for loans from $2,000.00 to $10,000.00.

Non-Eligible Costs 

Speculation in any kind of property, debt consolidation, vehicle financing, relocation of business outside county, media and non-profit businesses are not eligible.