Click here to download the Application Checklist

What is a micro-enterprise loan fund?

The Micro-Enterprise Loan Program is a small business loan fund that provides access to capital for small businesses with five or fewer employees. Special consideration will be given to micro business located in north and east Lubbock .

What is the purpose?

The purpose of the program is to provide working capital for start-up or expansion ventures. It is also to strengthen business production within the target area.

What is the goal?

The goal of the program is to serve as the impetus for entrepreneurs to attain the objectives of their business plans. The fund will provide more stringent lending criteria than mainstream financial institutions offering more flexibility in the areas of collateral, credit history, and business history.

Who can apply? Click here to download an Application.

As for the applicant, he or she must meet federal income guidelines as defined by the Department of Housing and Urban Development. The applicant's total household income must be 80% of the median income for Lubbock . In order to meet funding eligibility, the applicant must also submit a business plan detailing the venture's market demand for the particular good or service offered. Collateral such as equipment and inventory will also be pledged so that risks are minimized.

How are the loans approved?

The NELCDC has established a loan review committee to evaluate submitted applications. Board members of the corporation with extensive experience in banking and business areas oversee staff recommendations for approval or denial of applications. This committee will meet quarterly to review applications. The NELCDC, in conjunction with the Lubbock Economic Development Alliance and Worksource of the South Plains , will provide ongoing business support services to approved micro-loan applicants.

How does this request affect unemployment ?

The loan fund also serves as a resource that indirectly addresses unemployment. The current unemployment rates for both north and east Lubbock are 11%, compared to 5% for the city of Lubbock . This program seeks to address unemployment and remove some barriers to employment. These particular businesses benefiting from the fund are located within the community and mitigate barriers to employment such as transportation. In this manner, spatial mismatch is a non-issue, and the employee does not incur commuting costs.