Dowagiac open for business with microloansPublished 9:34pm Monday, July 18, 2011
The City of Dowagiac announced Monday that, with the assistance of the U.S. Department of Agriculture (USDA), it now has a micro-loan program available to help small and emerging business. The program is used for gap-financing where a bank participates in the majority of the project and the city’s funds will be used to provide gap financing.
“This loan program can help boost our local economy when companies are still strained or restricted somehow by their bank,” stated Mayor Donald Lyons. “We want to make sure that our businesses know that the City of Dowagiac is continuing to seek out ways to encourage and support new investment in our community.”
The $65,000 loan pool comes from a USDA Rural Business Enterprise Grant of $50,000 with a local match of $15,000. Loans can be made for working capital or equipment.
To be eligible for a loan, a company must be located within the City of Dowagiac. An application is available at City Hall in Dowagiac.
There is no application fee for applying for a loan with the city; however business owners need to have a business plan in place to present with their application.