Fifty thousand dollars is a lot of money to need and not quite enough to be easy to get. It is where a business owner lands when the shop has outgrown its space but a conventional bank wants a stronger relationship first.
That number is now the floor on a DeKalb County-backed loan.
Decide DeKalb’s Small Business Revolving Loan Fund is accepting applications for loans from $50,000 to $150,000. Terms run up to seven years and may be limited by the borrower’s lease. The program advertises a fixed interest rate of no more than 5 percent.
Who can apply
A business must be for-profit, hold a valid license in DeKalb County or one of its municipalities, operate from a commercial location and have been open for at least 24 months. The owner must have a personal credit score of at least 600 and be a U.S. citizen or permanent resident.
That excludes startups and home-based businesses. Businesses with unresolved tax liens, gambling establishments, adult businesses and liquor stores are also ineligible.
Eligible uses include renovations, equipment, fixed assets, inventory, working capital and expansion into another location. The money cannot refinance existing debt or finance residential development.
This is a loan, not a grant. Applicants may need to pledge business inventory, personal or business assets, property equity or other collateral. Personal and business guarantees may also be required.
Underwriters review credit history, tax returns, financial statements, cash-flow projections, debt schedules and accounts receivable and payable reports. Nobody is handing out checks at the door.
What happens after you apply
The application portal is operated by Outsourced CFO Group through LoanWell. Its team reviews applications before a Decide DeKalb Loan Approval Committee makes the final decision. The committee meets monthly, which matters if an equipment purchase or lease has a deadline.
The program also offers technical assistance with applications, credit readiness, accounting, business planning, marketing and operations. Partners include the UGA Small Business Development Center, Accion Opportunity Fund, the Urban League of Greater Atlanta, SCORE and Operation HOPE.
Business owners do not have to qualify for a loan to request that assistance. An owner who has operated for only 18 months or still works from home cannot borrow through this program yet, but can use the coaching to prepare.
You can learn more about this team in our This Is Atlanta : South DeKalb Edition episode.
Two DeKalb programs, two sets of rules
DeKalb County approved $2.5 million for the revolving loan and technical-assistance program. County records show that allocation includes up to $500,000 for administration and business support, meaning the full amount is not necessarily available for lending.
The county government also operates a separate Small Business Loan Program. That program offers $15,000 to $50,000, requires collateral and sets a minimum credit score of 650.
Access to capital and technical resources is often a major barrier when a small business is looking to scale. This program showcases how DeKalb is invested in the success of the businesses that decide to set up shop in this county. What I’ll be on the lookout for is: how many people apply, how the different use cases perform, and if the county decides to increase the size of the revolving loan amount.
