NORTHEASTERN PENNSYLVANIA ALLIANCE NONPROFIT AND COMMUNITY ASSISTANCE CENTER (NCAC) MICROLOAN PROGRAM

The loan eligibility requirements for this program are outlined as follows:

Type of Business. Eligible businesses including entrepreneurs, business start-ups and existing small businesses with less than 25 employees are the targets of this loan program.

Loan Range. $5,000 to $25,000. Average loan size is expected to be $10,000.

Use of Loan Proceeds. Loan proceeds may be applied to machinery and equipment, working capital, building acquisition, construction and renovation.

Loan Program Features

Interest Rate - The current interest rate on this loan program is 8.75%. Rates are fixed from loan approval until the loan is repaid.

Repayment Terms -The repayment duration for machinery and equipment is three to five years, working capital is two to three years and land and building is five years.

Loan Program Requirements

Business Plan - All applicants are required to submit a fully completed and documented Business Plan with any loan application. Small Business Development Centers at the University of Scranton/Wilkes University are available to assist in the development of a business plan at no cost to the individual business.

Location - The project must be located within the seven Pennsylvania counties of Carbon, Lackawanna, Luzerne, Monroe, Pike, Schuylkill and Wayne.

Other Criteria. Collateral and personal guarantees as well as assignment of Life Insurance are required

Fees. 1% commitment fee and legal costs.

Program Contacts

John Wozniak
jwozniak@nepa-alliance.org