How is Mountain BizWorks different from banks and other funding sources?
Mountain BizWorks is a nonprofit community development financial institution (CDFI). We consider non-traditional collateral and offer a flexible loan structure. We also provide business counseling and training and technical assistance to help potential borrowers improve their capacity to succeed in business. We are particularly interested in supporting job creation and retention.
Does Mountain BizWorks provide grants?
No - the only source of business funding Mountain BizWorks provides is loans.
How much can I borrow and for how long?
Mountain BizWorks will make loans for as little as $500 and as much as $150,000 – and in some cases we will consider larger amounts. Repayment terms are flexible and based on cash flow and use of funds.
What is your interest rate?
Our interest rates vary depending upon your particular situation and risk factors. You should expect that your Mountain BizWorks lender will discuss interest rate and loan terms with you.
Is my credit history important?
Credit history is one of the most important factors in making our decision to provide a loan. Credit history is the clearest indication we have of your willingness and ability to repay loans. However, we are willing to take into consideration extraordinary circumstances that may have damaged a previously good credit history.
Do I need collateral?
Yes, we will ask you to pledge your business assets to secure a loan. Offering assets such as your automobile, home, or other real estate makes us feel that you are as confident in your business as you would like us to be. Typically, we like to have spouses guarantee the debt to show there is family support of the business.
Do I need a business plan?
A business plan is necessary for start-ups and can be very useful for existing businesses, especially when major changes are planned. A business plan does not have to be lengthy, but should outline your goals and business direction. Our application packet includes lists of questions to be answered during the application process. It is important for us to be clear on the history of the business and where you see it going; how the business operates and brings in customers; and how the use of the loan funds will fit in with the other financial aspects of the business.
How long does the approval process take?
Once we have a fully completed application packet, Mountain BizWorks aims to have an answer to you within 2-3 weeks.
If my loan request is approved, when can I expect to receive funding?
Mountain BizWorks can typically close a loan immediately upon notifying the loan applicant of the approval based upon all approval conditions being met.