Financing your small business is an important step to growth. Here at AMI, we want to make this process as simple as possible. Read a compilation of our most-asked microloan FAQ's here.
What is a microloan?
A microloan is a small loan of up to $50,000 that can be used to aid small businesses.
Who can apply for a microloan?
Small business entrepreneurs located within the Phoenix area are encouraged to apply if you feel your business could use a small helping hand to boost the business’s long-term growth.
How can I apply for a microloan?
Through the AMI website, you can schedule a Loan Interest Meeting to meet with experts who can guide you through this process.
Why AMI specifically?
With AMI, there is a lower barrier to entry to acquire a microloan since alternative options like banks require higher credit scores. Also, AMI specializes in small businesses, which makes us more knowledgeable about what aid we can provide for your company.
What loans does AMI offer?
We offer loans up to $7,500 for a 2-24 month term at a simple interest rate between 5-8%.
What are some options or restrictions I have with the money I get from the loan?
Generally revenue-generating assets are preferable since they have a long-term effect. For example, If you had a grocery shop, spending money from a loan on a larger refrigerator would be a better investment than temporarily filling up inventory.
What is the overall process of a loan from AMI?
You would start with an initial call so we could understand the state of your business. After understanding what you plan to use the loan for, we work on the logistics of the loan. If the loan gets approved, you will be able to use the money received, and according to the specifications of the loan repayment plan, you pay the monthly amount back over the specified duration of the loan. Soon, all payments are made, and your business will continue on its journey to newer heights.
What are some of the documentation requirements that are needed for a loan?
Some required documents include Personal Tax Returns (last two years), Personal Bank Statements (last six months), Business Bank Statements (last six months), Optional - Utility Bill (most recent month), EIN and Tax ID, Planned Loan Budget (i.e. what are you planning to use the loan for?), Professional References
Can I apply for multiple loans?
Once the loan has been paid back in full those interested can apply for additional funding.
What does “holistic review” mean?
As many entrepreneurs are just getting started and may not have the best financial metrics. Given this, AMI uses the five C’s (Capacity, Capital, Collateral, Conditions, and Character) to evaluate loan applicants. Decisions will be made based on all factors.