Blog

April 15, 2010

New Loan Programs Announced!

MetroAction recently introduced new funding programs aimed at providing money to small businesses and entrepreneurs who do not meet bank lending criteria.  Funding is available in amounts from $250 to $200,000, depending upon program requirements.  

Our Loan Programs:

STEP Loan Program: Inspired by the work of Nobel Peace Prize recipients Muhammad Yunus and the Grameen Bank, MetroAction’s STEP Loan Program helps low income people improve their lives by providing access to small business loans and counseling.


Amount: $250 – $2,500
Terms: Range from 6-24 months, with no pre-payment penalty
Interest Rates: Range from 11.49% – 12.99% and are fixed for the term of the loan
Loan Use: Funds can be used for working or start-up capital, to purchase or upgrade equipment, increase inventory, renovations and much more! Our funds cannot be used for personal use.

Small Business Loan Program: The Small Business Loan Program was created to provide loans to small businesses that are not able to obtain bank loans. This program helps small business owners become “bankable” as they grow their businesses.
Amount: $2,501 – $75,000
Terms: Range from 12-60 months, with no pre-payment penalty
Interest Rates: Range from 7.49% – 12.99% and are fixed for the term of the loan
Loan Use: Funds can be used for working or start-up capital, to purchase or upgrade equipment, increase inventory, renovations and much more! Our funds cannot be used for personal use.

Small Business First Loan Program: The Small Business First (SBF) loan program is designed to stimulate the expansion and assist in the retention of small businesses for the purpose of creating new jobs and retaining existing jobs in Pennsylvania. SBF provides low-interest loan financing for a portion of the costs of land, building, machinery and equipment, and working capital to businesses unable to fully finance these projects with equity, bank financing, or other private and public sources.
Amount: up to $200,000 or 50% of project costs
Terms: 3-15 years, depending on use
Interest Rates: Based on market conditions and are fixed for the term of the loan
Loan Use: Funds can be used for land and building acquisition, machinery and equipment, research and development and working capital. Funds cannot be used for personal use.

“MetroAction‘s program helped us tremendously and not just being able to secure a loan,” noted Christine Kromko, co-owner of Jake’s Carpet. “They helped us with our business plan and were there when we had questions.”

For more details on MetroAction‘s programs and mentoring services, visit www.MetroAction.org or call (570) 341-0270.