INFORMATION ABOUT OUR LOAN PROGRAM
Terms:

• The loan range amount is from $1,000 to $150,000
• Current interest rates range from 9% to 12% per year
• Loans may be amortized up to 7 years or longer in some cases
• NOTE: Start up businesses are usually limited to loans of $25,000 and less

Although we are not a bank, we do utilize basic lending guidelines when reviewing a loan application. The difference is that we are more flexible in how we apply these guidelines and we review all aspects of your request in our decision making process. Some of the typical factors we review when evaluating a loan request include:

1. CREDIT REPORT - while good credit is important, CEF recognizes that applicants may have had credit issues in the past. We attempt to be more flexible than a traditional lender when reviewing your credit report
   
   
2. COLLATERAL - Collateral is considered a secondary source of repayment if the cash flow of the business is inadequate to repay the loan. Collateral also demonstrates that the owner believes in the business by putting up something of value to ensure payment. We typically require collateral for loans, however the size of the loan and other factors may influence the required amount. Start up businesses and larger loan requests will usually require more collateral coverage.
   
   
3. EQUITY (owner investment) - We want to see that an applicant has something at stake in the business. For a startup this may be in the form of cash or equipment or other assets already owned by the business before the loan. A startup business may require from 25-50% investment of your own funds invested to qualify for funding. In addition, a startup business loan is typically limited to $25,000
   
   
4. CASHFLOW / PROFITABILITY - As this is the primary source for repayment of a loan, we review financial statements in order to determine cashflow and profitability. A business that is not profitable or not showing cashflow, such as a startup or one which is struggling, can be a challenge to finance unless there are other mitigating factors such as sufficient collateral and/or a good turnaround plan.
   
   
5. BUSINESS INDUSTRY CLIMATE - Some businesses & industries are more difficult to finance as a result of economic or specific industry conditions.

The above is not intended to be an exhaustive description of our underwriting process but might provide you with an idea of the some of the factors we review. In all cases a well written business plan, accompanied by complete and accurate financial statements will provide your best opportunity for funding.

Good luck with your business and please call if you have questions.

Equal Treatment of Clients
We do not discriminate on the basis of race, color, religion, gender, marital status, disability, age, national origin or sexual orientation in services or accommodations offered or provided to our employees, clients or guests.