ProsperUs, a Detroit-based nonprofit, has introduced a new loan program available to Wayne County small businesses.
The $1.5 million program will fund loans ranging from $10,000 to $50,000 for microenterprises within the county. The goal is to help small businesses in low- to moderate-income communities that may be struggling to overcome the impact of the COVID-19 pandemic.
ProsperUs is a nonprofit Community Development Financial Institution (CDFI) partnering with Community Reinvestment Fund, USA (CRF), and supported by a grant from the CDFI Fund’s CDFI Equitable Recovery Program (CDFI ERP).
“CRF’s commitment to distributing patient and flexible capital to under-resourced communities in Wayne County is transformative,” says Paul Jones, CEO of ProsperUs Detroit. “With their support, ProsperUs Detroit is empowered to ignite economic vitality in areas long overlooked. Together, we’re not just building businesses; we’re constructing pathways to prosperity and sustainable growth, one entrepreneur at a time.”
Small businesses and startups searching for funding can tap into this funding, which offers flexible financing, a 12-month interest-only period, and the opportunity to have up to 20 percent of the loan forgiven.
Loan forgiveness requires the business to meet certain criteria, such as staying current on interest payments and completing a ProsperUs Detroit educational curriculum within the first year of receiving loan proceeds.
The program, which began in May, extends attractive loan terms, including a 7 percent interest rate. Additionally, it doesn’t require borrowers to have extensive credit or business histories.
No minimum credit score or collateral is required to be eligible and loan proceeds can be utilized for various business needs such as working capital, refinancing existing debt, inventory, and marketing.
The program already is working with local enterprises, including Miss Eva’s, a luxury speakeasy in the Grandmont Rosedale neighborhood set to open later this month.
“Working with ProsperUs Detroit has been transformative for me and my business, Miss Eva’s Detroit,” says Jay Williams, owner of Miss Eva’s. “The loan process was smooth. The program will make a portion of my loan forgivable after just 12 months of on-time payments, which will make the capital even more affordable for a new business like mine.
“ProsperUs sees beyond the numbers and truly understands who I am as an entrepreneur. The additional support, from technical assistance to the on-site consultations, is invaluable. I’m excited to open our doors and contribute to creating a vibrant and safe community in the Grandmont Rosedale neighborhood.”
For more information about this loan program, eligibility criteria, and to start the application process, please visit ProsperUs Detroit.
