Through the QVBAC, business loans ranging from $500 to $100,000 are available to existing and startup businesses that operate within the region and that cannot access equivalent financing through conventional resources. The amount of the loan is based on the use of funds. Historically, loans have been made for new equipment, working capital, refinancing and expansion. The monthly payment is based on a number of factors including cash flow projections. The interest rates vary with the borrower and the source of funds but generally are on the low side of market.
The intent of our program is to fashion a loan that is manageable by the borrower and will be paid back.
Interest rates for microenterprise borrowers who qualify under the USDA Rural Microenterprise Program will range from 5% to 10%. Lower rates are associated with lower risk loans (i.e., strong collateral, strong cash flow). Most borrowers will fall in the 7%-8% range.
Categories of borrowers include:
A Microenterprise is usually defined as a small business with a limited number of employees, although sometimes as many as ten (10). Some Microenterprise loans are made to businesses in rural locations (most of the Quaboag region) and some are made to businesses where the owners are low-moderate income. Loan amounts can range from $500 up to $50,000; our average "micro" loan is $35,000. There is no requirement for job creation.
We offer loans to small businesses planning to create jobs in the near future. Borrowers have received loans for many purposes, including: start-up equipment, purchase of assets, working capital, and expansion or acquisition of business-related real estate.
Occasionally we receive a loan request from a business that does not qualify as either a Microenterprise or a Job-Creating Small Business. If you are one of these, let's talk. We have made loans outside of these categories for compelling reasons.
• Have you approached a bank about financing your business or business idea and been unsuccessful in obtaining the financing you need?
• Have you been afraid to seek financing because of the paperwork involved? Because of a poor credit history? Or, because of your inexperience in business or with business loans?
You must first meet the following criteria to be eligible to apply for loan assistance:
• Do the majority of your business in one of the following towns: Belchertown, Brimfield, Brookfield, East Brookfield, Hardwick, Holland, Monson, New Braintree, North Brookfield, Palmer, Spencer, Wales, Ware, Warren, or West Brookfield.
New! We can now lend to microenterprise businesses with rural addresses in the towns of Sturbridge, Southbridge, Charlton, Dudley, Oxford, Webster and Douglas.
•Be able to prove that you are not eligible for conventional financing, either completely or partially. A referral to us from a banker is often sufficient to document this need. We encourage commercial lenders to contact us when a good customer fails to meet bank underwriting standards.
Below are common loan inquiry and application forms. Click on the name of the form to download and print. These files are in a PDF format. You will need the Adobe Reader software to open PDF files, please click on the link below if you do not have the software.
1. Pre-Application Form (to determine if you meet basic eligibility)
**A minimum of two hours of technical assistance is available for all potential loan applicants.
In accordance with Federal law and U.S. Deptartment of Agriculture policy, this institution is prohibited from discrimination on the basis of race, color, national origin, sex, age, or disability.
To file a complaint of discrimination, write USDA, Director, Office of Civil Rights, Room 326-W, Whitten Building, 1400 Independence Avenue, SW, Washington, D.C. 20250-9410 or call (202) 720-5964 (voice and TDD).
The Quaboag Valley Community Development Corporation, together with its affilicate, the Quaboag Valley Business Assistance Corporation, are equal opportunity lenders, providers and employers.