FAQs
1. How do I apply for a loan?
To apply for a loan contact the NMI office closest to you. It is best to attend a free Loan Information Session (Northern Nevada or Southern Nevada) to receive hand-ons assistance with completing a successful loan application. However, if you are unable to attend one of these sessions we will send you a complete loan application package that includes directions. If you are applying for a specialized microloan please let us know to ensure you will receive the correct loan application package and information.
2. How do I apply for a loan if I don't live in Las Vegas, Reno or Carson City?
It's simple! If you live in Nevada's rural communities simply, contact the NMI office closest to you. We will send you a complete loan application package that includes directions. Our helpful staff will also explain our loan procedure to you over the telephone or via email. See our Rural Nevada Loan Program.
3. How long does the loan process take?
The loan process is dependant on each individual applicant and the amount of assistance they require with regard to the business plan and projections. Additionally, the loan process will depend on funds avaliable. NMI staff is happy to assist you in presenting a complete loan application. Most delays occur due to incomplete loan applications.
4. What if I have bad credit?
A bankruptcy or late payment does not necessarily disqualify you from consideration for a loan. When considering credit, NMI looks at the circumstances behind these credit issues such as death, medical condition, divorce or job loss. Repaired and rebuilt credit is also considered. NMI looks favorably on efforts to rectify past credit issues. NMI uses your credit report to gauge how you have handled past debts. Current and reoccurring late payments are typically not considered. If you have credit issues, you should submit a detailed personal statement explaining circumstances and action taken with your loan application. You may also seek assistance from Consumer Credit Counseling.
5. What collateral do I need?
Appropriate collateral depends on many factors most especially the size of your loan request. NMI will require a personal guarantee and business assets as collateral. It is common to also pledge personal assets and/or have a co-applicant to strengthen a loan application. (Examples of collateral include: home or property, vehicles, equipment, inventory and accounts receivable).
6. Are you a government agency?
No. Nevada Microenterprise Initiative is a private nonprofit organization. We are certified by the US Department of Treasury as a Community Development Financial Institution. We are also a US Small Business Administration Intermediary Lender. As such we borrow money from the SBA and in turn lend it to the small businesses of Nevada. As a 501c3 nonprofit organization we receive grant funding from various government and corporate groups.
7. Can I get a grant to start my business?
In general, NMI is unaware of any grants for small businesses. There are savings programs for low income individuals to start a business. There are matching savings programs for low-income individuals to start a business called Individual Development Accounts (IDAs). For more information on NevIDA see CSA.
8. Can someone help me with the loan application?
Yes! NMI staff is happy to assist you in completing your loan application. After attending a Loan Information Session (Northern Nevada or Southern Nevada), contact the NMI office closest to you for an appointment. NMI cannot accommodate walk-ins.
9. What can I use the money for?
Loan funds can be used for:
Start-up costs
Machinery and equipment
Inventory
Working capital
Furniture & fixtures
Supplies
Loan funds cannot be used for:
Personal expenses
Real estate
Delinquent taxes
Down payments
10. Which business class should I take?
If you would like assistance in choosing the business class that meets your needs contact us. You can also attend a free orientation for a complete course outline and a business 'quiz' that will help you decide which class is right for you.
Most people begin with Feasibility Study, continue with Business Foundation and finish with Business Plan. You may decide to complete all three courses in a row or enroll in one per 'semester'.
In general, Feasibility Study is designed for new business owners or those 'just thinking' about going into business. In general, Business Foundation is designed for new business owners or those who have completed Feasibility Study. In general, Business Plan is designed for existing business owners and those completing both Feasibility Study and Business Foundation.
11. What does it take to get a loan?
In general a successful loan package includes a good business idea and plan and strong business management skills. When considering a loan application, NMI uses the '5 C's of Credit' as a rule of thumb.
Capacity - The capacity of the business and yourself to repay the loan.
Collateral - Is the collateral you have offered enough to repay the loan if all else fails?
Conditions - The conditions in which your business must succeed. Conditions include but are not limited to: the economy, your competition, and the market.
Credit - Your credit history and how you have repaid previous financiers.
Character - Your personal characteristics and your ability to successfully operate the business.
The strengths and weaknesses of each 'C' are weighed.
12. What is a business plan?
A business plan is the 'roadmap' for your business. A good business plan is your best business management tool and is also required in order to apply for a loan. There are many local resources and web sites that discuss business plans. See our online resources page for more information. A generic business plan template can also be found on our web site.
13. What if I need more money than NMI can lend?
NMI often works with banks and other community lenders. NMI can 'participate' in multiparty financing up to $105,000. If your needs are greater than $35,000 it is best to contact the NMI office closest to you to discuss other options. You should also contact your local Small Business Administration office.
14. Am I required to take NMI's classes to qualify for a loan?
No. NMI's classes are recommended but NOT required to apply for a loan.
15. What kinds of businesses has NMI helped?
Typical businesses are for-profit businesses employing 5 or less individuals. Our website profiles some of the businesses we have assisted. NMI cannot lend:
To nonprofit organizations - nonprofit child care center ARE eligible.
For gaming purposes
To businesses considered obscene
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