PROGRAM DETAILS
PROGRAM DETAILS
Application + Review Process
This program is designed to build community and connection. Different than other CIC loan products that offer rolling applications, there is a clearly defined timeline of deadlines and events that must be followed to receive funding.
Applications are collected monthly. Decisions are made by a community-managed Committee of BIPOC business owners and leaders. They meet during the 2nd week of each month to approve up to 4 applications. Applicants will be notified promptly after decisions are made.
The application process includes 3 steps which have been thoughtfully designed to support entrepreneurs to submit their strongest possible application to this competitive Loan Fund. This fund is revolving and does not close, as long as funding is available.
Storytelling!
Storytelling is THE center of the application and approval process. While basic business information, demographics, and declarations will be included, business owners’ personal and professional stories will be what the committee will use to make funding decisions.
Benefits of this approach include:
- Reimagined capital access qualifications
- Eliminates review of credit, collateral, and other traditional means for loan decisions that are based on wealth and disproportionally impact BIPOC Communities negatively
- Limiting arduous, time-consuming, and sometimes expensive requirements including opening a business bank account and registering the business, unless approved for funding
Program Guidelines + Requirements
Program Guidelines:
- Loan amounts: $500 to $10,000
- Term: up to 4 years
- Interest Rates: 3%
- Loan Fees: $9 UCC Filing Fee
Requirements:
- Business must be located in Southern Arizona or Maricopa County
- Business must be in operation for at least 3 months
- Completion of Info Session, Inquiry Form, and Your Business Story submitted via online video/audio and text
*Also note: Loan funds must be used for business purposes. Business cannot be engaged in any of the following activities: multilevel marketing/direct sales, financial services, illegal activities. Business and business owners cannot have any open tax liens
Post Approval Requirements For Funding
Once an applicant is approved for funding, loan is contingent upon verification of application information and submission of all required documentation within 60 days.
- Provide a recent Business Bank Account Statement
- Register Business with the Arizona Corporation Commission
- Identification for all business owners
- Provide a name and number of a Reference
You Dream It
We Make It Happen
What information is the Committee looking for?
Here are important questions that the BIPOC Loan Committee will consider when reviewing your application:
Business Introduction
- Please introduce yourself and your business!
- How do you and any co-owners of your business culturally identify? If you are a nonprofit or corporation, please answer for any other officers, directors, or leadership.
Business Background
- Please tell us a little about your business story.
- When and why did you start your business?
- What is the purpose of your business
- Is this business your main source of income or is this a side hustle that you want to grow?
- Where does your business operate from? (Home, store front, mobile vehicle?)
- What your primary products and/or services are (For example, we sell X, Y, Z and prices range between $5 – $10 apiece.)
- Category, price, description of service.
- Over the next 3-5 years, where do you hope to go with your business?
Customer Awareness
- Why are your customers selecting your products and/or services over others? (what makes you special) Please provide examples/stories/why do they come to you?
- How many customers do you have? How do you attract and engage with your customers and the local community? Please provide examples.
Business Financials
- What will you use the funds for. Be specific and include items to be purchased, prices, and any other relevant details. Please break down into dollar amounts.
- Complete and upload a Profit and Loss Statement (P&L)
- How will this loan help you grow your revenue or client base?
- Is your business currently profitable? If not profitable, when do you see yourself getting to profitability? (meaning without the loan when would this happen for your business)
Commitment to Loan Fund Repayment
- While this is a 3% interest loan, it is not a grant, meaning you will have to pay it back. These funds go back into the community. This fund only operates by you making your payments. If you don’t make your minimum payments, we’re not able to make loans to other businesses. If I don’t make this loan payment, I am preventing other businesses, like myself, from getting a loan. Do you commit to making the minimum payment of $222?
Contribute To The Fund
