Contractor/Vendor Working Capital Program
PURPOSE
To provide short term working capital loans to businesses participating in the MBWE initiative promoting the utilization of minority and woman owned businesses.
ELIGIBLE BUSINESSES
Businesses certified as minority or woman owned by the MBWE program holding an assignable contract and referred to the program by agency participants.
USE OF PROCEEDS
Loans to be used by MBWEs for short term working capital to ensure the timely performance of contracts awarded to program participants.
TERMS
- Amount: Maximum $25,000
- Term: Life of the contract or six (6) months whichever is less.
- Security: Assignment of the contract with two party payee on draws. Corporate/personal guarantee. Other assets if available.
- Repayment: Loans will be repaid from proceeds of an assigned contract. Repayment schedules will be determined on a case by case basis.
- Rate: 11% APR
- Loan Approval Authority: Small Business Assistance Corporation Loan Committee. SBAC Loan Committee can approve WCP program participation for a period of 12 months. Multiple loans are subject to staff review, no derogatory performance in program repayment history; outstanding balance to borrower and/or affiliates not to exceed $25,000.00.
- Fees: Loan set up fee of $100.00 plus out of pocket closing cost. Fees can be paid from loan proceeds.
- Governing revolving loan program regulations will be the U.S. Small Business Administration - MicroLoan Intermediary Program.
- All loan approvals subject to the availability of funds.
HOW TO APPLY
Obtain a loan application:
- Apply Online
- Download the Application (PDF format) and return completed form by fax to (912) 232-0385
- Contact the SBAC by Phone at (912) 232-4700
- Visit the SBAC Office: 111 E. Liberty Street, Suite 100 – Savannah, GA 31401