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Business Loan Application Information

Initial Business Loan Requirements 

  1. Completed Loan Application form
  2. Two I.D’s (one must have your picture).  One must show that person was previously a refugee or asylees (ex. I-94).
  3. Most recent 4 bank statements (personal and business).
  4. Last two pay stubs if currently employed outside of the business
  5. Federal Tax returns for the last 2 years, both personal and all business returns (if any business tax forms were filed separately in either year).
  6. Personal Financial Statement.
  7. Business Plan (for newer businesses) or plan for expansion with new use of funds including expected one year cash revenues and expenses.
  8. Business registration form (sole proprietorship) or Articles of Incorporation w/ list of all shareholders/owners. Operating agreements must be provided for all LLCs.
  9. SBA Debarment Form
  10. For an existing business: income (or profit/loss) statement, balance sheet, all for the last 3 years, or as far back as available.
  11. Copy of all Required Licenses and Permits. Ex. Business License, Commercial driver’s license, construction permits, etc. depending on the business and type of loan requested.
  12. Lease expiration at or beyond the loan term (if business has a storefront)
  13. Credit history 650 or more or solid co-signer*
  14. $50 application fee
  15. *If a co-signer is needed, co-signer application is needed with the following required documents:
    • Identification
    • Last two (2) pay stubs
    • Two years tax returns
    • Three (4) months bank statements
  16. Other information that may be applicable to a particular loan application at the discretion of CEDS or CEDS loan committee members.

Steps in applying for a loan

Submit your completed Microloan Application to CEDS and set up a meeting with a Loan Officer/Technical Advisor.

Bring each of the items enumerated above (Initial Business Loan Requirements) of the Micro loan Application to your meeting.  We will discuss your application materials with you, answer questions that you have, and tell you what information is still needed.  You will need to pay a $50 application fee.

  1. When your loan manager has received all of your information, (s\he) will prepare and present a report to the Loan Review Committee.  In making its decision, the Committee will study your:
    • Credit History. A score of 600 or more is required. Do you pay your debts on time?  Do you have judgments or bankruptcies?
    • Business Plan and Financials. What is your business idea?  What items or services will/do you sell?  What is your experience in producing them?  Have you or how well have you managed a business?  How will you compete or continue to compete and market your business?  What will be your monthly expenses and sales revenues for at least the next year?
    • Collateral. We expect you to provide collateral equal to at least 100% of the loan.  Examples include liens on vehicle, business assets, home equity, equipment, machinery, jewelry, and even cash.  If you are unable to provide collateral, you will need a co-signer who has a credit score of over 620, collateral and/or moderate income (based on HUD’s Evaluation) w/employment history of more than 2 years and who would be able to pay your loan balance if necessary.  Please understand that we will work closely with you to build a strong business plan so that your business will be successful.
    • Cash. Contribution to the Business.  We normally loan up to 70% of the funds needed for your project for loans over $10,000 and 80% of the loan for the loans under $10,000.  You are expected to invest at least 30% and 20% respectively from your own savings.
  2. After your loan is approved, you will be assessed fees to pay for closing the loan and securing the collateral. 

Because each application is based on individual circumstances, it is impossible to provide a fully exhaustive explanation of the process for your loan.

Should you have any questions, please contact us at:

Phone: (303) 835-1835

E-Mail: aanderson@cedsfinance.org                               

Additional Requirements after initial loan approval 

  1. Proof of ownership of collateral.  If real estate is collateral, a copy of deed of trust. [CEDS will order a title search and place all liens at your cost].  If a vehicle is collateral, a copy of the title.
  2. Purchase orders or invoices for items to be purchased.
  3. Proof of business insurance – copy of policy (CEDS will be loss payee on policy).
  4. If contracted owner/operator, copy of contract(s) or letter of employment
  5. Evidence of your equity contribution (30%/20% minimum depending on type of collateral unless additional is required by CEDS for any reason).
  6. Other information that may be applicable to a particular loan application at the discretion of CEDS or CEDS loan committee members.

Loan Closing Costs

Loan Amount

Closing Costs

$500 – $2,000

$25

$2,001 – $3,000

$50

$3,001 – $5,000

$100

$5,001 – $10,000

$150

$10,001 – $15,000

$200

$15,000 – $20,000

$250

$20,000 – $30,000

$300

      

Additional costs for higher loan amounts will apply.

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