Please be aware that not all small businesses located within Mississippi such as used car dealerships, investment firms, real estate companies, or non-profits qualify. All applicants must provide the following information, signed and dated, to SBCF for the initial processing of their loan application:
A completed application must be submitted for loan consideration. This can be found in the Apply Now section of our website.
A detailed business plan which includes a narrative of the company, marketing strategy and cash flow projection must also be submitted.
Interim Financial Statements or Financial Statements for the last two years for an existing business.
Resumes of the principals are needed to help in the evaluation process.
Phase II Requirements
If the initial review is favorable, client must also provide:
• Business and personal tax returns for the most recent year end
• Verification information, such as quotes and invoices
• Business and personal references
Collateral is required on all SBCF loans. The value of the collateral must equal or exceed the amount of the loan request.
How long does the loan application process take?
The length of time required for any SBCF loan approval is dependent upon such factors as the timeliness of the information supplied by the applicant including the business plan
Loan amounts range from $5,000—$150, 000, with a $75,000 maximum for start-up businesses
The maximum loan amount for Micro-Loans is $35,000
SBCF works with each loan applicant on a case-by-case basis so processing times may vary
SBCF’s interest rates are competitive with bank rates and repayment terms are flexible
Loan Contract Program
SBCF administers this loan program for the MS Development Authority. Applicants must meet MDA eligibility requirements.
Business must be owned/operated in MS
Eligible for up to $75,000 or 75% of total project cost for working capital—with 0% interest
Project must be for a public entity
Project must be for a public entity
Program is available to prime and subcontractors
Each business can apply up to 3 times – total
Must have been awarded contract (executed contract must be included in loan packet)
Must have all applicable contractor’s insurance(s) and bonding may be required
Assignment of contract or re-direct letter to SBCF is the loan collateral*
Fees: Loan application/processing; closing costs and 1% origination fee
SBCF allows applicants to explain derogatory credit. If the explanation is acceptable and all other requirements are met, the applicant can still receive a favorable recommendation.
For SBCF customers, the equity investment is 5%-10% instead of the 20% normally required by banks.
Loans are not priced based upon risk. High risk applicants may be eligible to receive market rate loans.
Collateral requirements may be less stringent than those for traditional financial institutions.
Some form of technical assistance is provided on all loans that SBCF processes.
SBCF’s technical assistance program is designed to enhance the ability of individuals and business owners to conduct business more effectively and efficiently in an effort to become self-sufficient. SBCF conducts seminars on various topics including “How to Start a Business”, “How to Develop a Business Concept Statement” in order to prepare a business plan, Personal vs. Business Credit, Pricing and Sales, “Business Financials: What You Need to Know”, Break even analysis, and much more. Sessions are beneficial to both start-ups and existing businesses. Sessions may be conducted in a one-on-one session or group session and usually free and open to the public . One day workshops are also available statewide upon request.
Loan Processing Fees
$150 loan application fee ($100 (non-refundable) due when application is submitted and $50 due at or before closing if the loan request is approved)
A maximum 2% origination fee which is due at closing, along with all other closing costs, permits, attorneys fees, etc.