MicroLoan Eligibility & Requirements
CTCIC staff has extensive experience working with the MicroLoan program – the quickest and easiest way to determine if your business and your project meet program eligibility requirements is to contact CTCIC. At the end of a phone conversation, we should be able to determine if the MicroLoan or Childcare MicroLoan is the right financing option for your business or whether one of CTCIC’s other loan programs is an option.
If your application is $20,000 or more, you must have applied for similar financing from a bank and been rejected in writing
Credit History
Your personal credit history is an important factor in CTCIC’s assessment of your application for a MicroLoan. You should check your credit history before applying for any loan and clear up any mistakes that may adversely affect your ability to borrow money. The service is available annually to individuals free of charge. Check Credit History Now
Owner Contribution
As a start-up, you are also required to have a personal investment in the business. Typically, CTCIC wants the business owner to contribute 20% to the project being financed. The investment can come from personal assets or from family and friends. For example, if your start-up costs total $22,000, CTCIC will finance $17,600 and you will be required to invest the remaining $4,400 to start up your business.
Collateral
All appropriate business assets, personal guaranties and personal assets as necessary to collateralize the loan.
Amount, Rate & Term
| Program | Amount | Rate | Term |
|---|---|---|---|
| MicroLoan | Up to $35,000 | 9.9% | Up to five years |
| Childcare MicroLoan | Up to $25,000 | 9.0% |
Fees
CTCIC charges a $100 annual fee, plus closing costs (variable).