small loan lending
MACED realizes that in many places in Appalachia, it is difficult to secure small amounts of business financing up to $35,000. MACED addresses this problem by providing capital to small businesses that are contributing to the entrepreneurial and innovative spirit of the region.
In the Appalachian region of Kentucky, 89 percent of businesses have less than five employees. Thirty-four percent of the workforce is employed by businesses with fewer than five employees. Although small, these types of businesses have a huge impact on Kentucky’s rural communities, providing needed goods and services.
Our microloan program provides access to capital for borrowers needing less than $35,000. As a non-bank lender, we are able to be flexible with interest rates, payment schedules, collateral and other financing arrangements.
Not only do we provide borrowers with much needed capital, but we also provide access to technical assistance loans. Our technical assistance loans provide businesses with the funding necessary to receive quality training in management, financial systems (software purchases and training), marketing, operations and professional certifications. We combine our investment capital with one-on-one technical assistance tailored to meet the needs of entrepreneurs.
Rates, Terms and Collateral
Our interest rates are based upon on the current prime rate and are priced based on a risk assessment. Terms range from one to five years, depending on use of proceeds. Loans are collateralized and usually require personal guarantees and/or key person insurance.