Microloan Rates and Fees Disclosure Statement

Required Fees

• Upon the completion of the ECDI general application form, ECDI clients will be required to pay a non-refundable application fee of $25.
• A non-refundable $100 training and technical assistance fee is required for all loan applicants. This fee will cover the required financial literacy and microenterprise development training courses and pre and post-loan technical assistance. The fee is required even if it is determined that the applicant is not required to take training courses. Payment for and completion of above mentioned trainings does not guarantee the receipt of a loan or an IDA from ECDI. 

Financial Details of ECDI Microloans

• All ECDI microloans have fixed rates and terms.
• Personal credit is reviewed for qualification purposes.
• The maximum loan term for an ECDI microloan is 60 months.
• There are no pre-payment penalties for early payoff of an ECDI microloan.
• ECDI often leverages multiple loan funds to capitalize a business. At loan closing, a borrower may sign multiple participation notes representing individual loans   which, when combined, create a loan package.       Interest rates may vary among participation notes. A single monthly payment amount, based on the consolidated loan package, will be disclosed in a master agreement and communicated to the borrower.
• Loans must be secured with collateral.
• Eligible uses of loans funds include the purchase of equipment, supplies, or inventory, or other qualified business start-up or expansion costs.  Working capital funds may be eligible and are calculated based on     business needs.
• All loan funds are disbursed in the form of a check or checks on the day of loan closing. Checks are written directly to the business’s vendor. Working capital checks are written directly to the business.
• The first loan payment is due approximately 30 days from the date of loan closing, on the 6th or 21st of the following month. Subsequent payments are due on the 6th or the 21st of each month thereafter.
• Borrowers are required to have an active business checking account and to make their loan payments through automated monthly debits (ACH) from their accounts. ACH debits transactions are set up at loan closing. 
• Each participation note has an associated origination fee, which will not exceed 5% of loan amount. This fee is paid OUT OF POCKET and is due at loan closing. It is not disbursed from proceeds of the loan. Actual origination fees will be communicated to borrower prior to closing.
• Origination fees may be paid by personal check, business check, certified check, or money order.
• SBA microloans have a yearly servicing fee of up to $100.00.