FAMU Credit Union Creates Million Dollar Microcredit Program for Women and Minority Business Owners
TALLAHASSEE, Fla. (WTXL) – The FAMU Credit Union has partnered with Leon County and the Office of Economic Vitality to create a million dollar microcredit program that will specifically target women and minority smallholder owners. Leon County businesses.
The money for the revolving loan initiative comes from the Coronavirus Aid, Relief and Economic Security Act (CARES); a federal economic stimulus bill that provides for payments to state, local and tribal governments facing the impact of the COVID-19 outbreak.
“The new microcredit program that we are offering to minority business owners and women can provide them with the immediate capital that often serves as a catalyst to launch large-scale efforts that attract large-scale income,” said Sheilah Montgomery, President and CEO of the FAMU Federal Credit Union.
Montgomery also said that FAMUFCU will bring up to $ 250,000 to the “table” each year to be used for administrative and operational costs associated with the initiative.
Called SmartSteps, this aptly named project promises to provide additional benefits, convenience and flexibility that commercial borrowers will appreciate:
- Microloans up to $ 50,000 with a fast turnaround time
- Lower credit points taken into account
- Negotiable repayment terms
- Lower interest rate (three to four percent)
- Loans can be used for a commercial line of credit, commercial equipment, working capital, or other financing as negotiated
- No collateral required for loans less than $ 15,000 if no specific credit risk
- $ 25 application fee
- Technical assistance and references to other resources
For more information on FAMU Federal Credit Union and the SmartSteps Microcredit Initiative, call Sheilah Montgomery, President / CEO, FAMU Federal Credit Union at (850) 222-4541, or ReAndra Clayton at (850) 300-7281 .