Community Business Partnership is an approved SBA Intermediary Microloan lender. We are currently lending in the Fairfax County business market. We look forward to expanding our financing market/areas of service in the near future.
Who it helps
Individuals seeking to start a business, startups, and established small businesses seeking capital to grow and expand their operations.
Rates, Terms, Costs
- Amount Maximum: $1,000 – $50,000 per business (per owner)
- Interest Rate: Fixed rate per SBA terms – as low 7.75% to a high of 9.625%
- Terms: Up to 6 years
- Fees: Closing fee rate: 3% (Fees are financed into the loan);
- Late payment fee: 5% of outstanding balance;
- Non sufficient funds fee: $25.
Eligibility
- Must be a start-up, newly established, or growing for profit small business concern or, a non-profit child care center.
- Businesses with 50 or fewer total employees
- Must be established and operating in Fairfax County. (other localities will be added)
- Existing businesses must have an ‘ACTIVE’ status with State Corporation Commission
- Must be a U.S. Citizen or have legal residency status.
- Must meet type of business eligibility standards at the time of application for the Microloan.
- Must be be considered small under SBA 7(a) business loan size requirements. Reference 13 CFR §121.201 for applicable Size Standards.
- IF you are applying for more than $20,000 through this program, you must meet a “no credit elsewhere” test.
- Other eligibility requirements might apply based on your business.
Ineligible Types of Businesses
- Any nonprofit business other than a nonprofit childcare center;
- Any financial business primarily engaged in the business of lending;
- Life Insurance companies;
- Any businesses located in a foreign country;
- Any pyramid sale distribution plan;
- Any business deriving more than one-third of its gross annual revenue from legal gambling activities;
- Any business engaged in illegal activity;
- Any private club or business that limits membership for reasons other than capacity;
- Government-owned entities (except businesses owned or controlled by a Native American tribe);
- Any businesses principally engaged in teaching, instructing, counseling or indoctrinating religion or religious beliefs, whether in a religious or secular setting;
- Loan packagers earning more than one third of their gross annual revenues from packaging SBA loans;
- Any business in which the Intermediary or any of its Associates owns an equity interest;
- Any business primarily engaged in political or lobbying activities;
- Any businesses in which an Associate is an undocumented (illegal) alien; or
- Any business owned or controlled by an applicant or any of its Associates who are presently debarred, suspended, proposed for debarment, declared ineligible, or voluntarily excluded from participation by any Federal department or agency.
*Note: Other ineligibility business types might apply. Check with the CBP lending team.
Fund Uses
Borrowers can use the loan funds for the following needs:
- Purchase of furniture, fixtures, supplies, materials, equipment, and/or
- Working capital
- Applicable business operating expenses
*Microloan program funds should not be used to improve any part of a private home unless that part is specifically dedicated to the funded business.
Ineligible Uses
- It cannot be used to pay debts to close the business;
- Non-business related expenses;
- Purchase real estate;
- Payment of delinquent taxes including Federal, state, or local payroll taxes, sales taxes, or similar taxes that are required to be collected by the applicant and held in trust on behalf of a Federal, state, or local government entity.
- IF applicant has an approved payment arrangement with the IRS and is current on the payments in the arrangement, an applicant may be considered for a microloan.
Requirements
Prospective applicants must participate in a brief application intake and pre-submission counseling session. Successful borrowers are required to access business technical assistance support through training classes and 1-on-1 business counseling support for growth and sustainability.
Interested in apply for the CBP’s SBA Microloan, please submit a loan inquiry and a CBP lending team member will follow-up with you.
