Entrepreneur and Business Expansion Loans

Narrative Description	People Incorporated Financial Services is a community development financing institution created to provide financing solutions to viable businesses that build wealth and create jobs for low-income and low-wealth families and to provide high quality service to businesses that build on the community’s assets. In support of this goal, we provide business and financial training, one2one counseling, and access to credit. We can provide up to $35,000 for a start-up or existing business. Loan proceeds can be used for working capital, inventory, equipment, and property improvements.
Loan Amounts	Minimum: $1,000 Maximum: $100,000
Eligibility	You must plan to locate your business in the following service area: The Counties of Washington, Russell, Dickenson, Buchanan, Wise, Lee, Scott, Tazewell, Bland, Wythe, Smyth, Floyd, Grayson, and Carroll, and the cities of Bristol, Galax and Norton Virginia. Business must be owned by or employ low to moderate income persons (Southwest Virginia average income $42,141 and 80% of low to moderate income average is $33,713 ** HUD 4/13/07)
Rate Structure	Interest Rates on loans are fixed for the term of the loan. Interest rates are considered on an individual basis. Loans are approved in keeping with the needs of the borrower and within limits of available capital, therefore the following conditions will be considered: borrower’s ability to pay, proposed use of proceeds, timeline of project, life of assets.
Maturity terms	Payments are based on an amortization term up to 10 years.
Collateral	All loans must be collateralized. 1st or 2nd Deed of Trust on real estate, vehicles, equipment purchased with loan proceeds. The amount and type of collateral acceptable will be at the discretion of People Incorporated Financial Services and will generally be sufficient to assure repayment of the loan.
Fees Charged: Origination	1% depending of transaction size and 2% if real estate is involved.
Late Payment Fees	5% or $25 minimum, after the 5th day
Prepayment Penalty	None
Project/Borrower Characteristics	Borrower must be financially stable, capable of financially supporting expanded operations.
Acceptable "Equity"	Existing equity or enhanced equity appreciation based on preliminary appraisal.
Other Conditions	Signed statement that there are no outstanding judgments pending against the loan applicant. Statement that the borrower is in Good Standing with the State Corporation Commission of Virginia. (for corporations only) Agreement to provide financial statements as needed during the term of the loan Agreement to participate in marketing or other promotional efforts.