Our Services
The need to expand small business development, especially within low income neighborhoods has never been more critical. There are 61 census tracts in the City of St. Louis designated as Economic Development Hot Zones, and 105 census tracts in the City and St. Louis County that meet special lending requirements of the US Department of the Treasury.
St. Louis City and County are losing economic share of the statewide economy, measured as the average of the percentage of the state’s employment, population, and personal income in a particular county. Viewed another way, the demand for microlending is growing as unemployment rises and personal income shrinks. Yet the CFED 2009-2010 score card rated the state of Missouri 38th in microenterprise ownership and 32nd in small business ownership behind much of the rest of the country. More recently, a Census report places Missouri in the bottom one-third of states for business start ups.
The International Institute Community Development Corporation (IICDC) is helping low income and minority entrepreneurs start, strengthen or expand small businesses primarily in the designated markets. Currently 60% of all active loans are within these designated areas of need. The impact of this microenterprise development is felt by the community as well as by the individual micro-business owners.
The low income and minority clients served by the (IICDC) do not have access to traditional bank financing. The IICDC offers flexible underwriting criteria, nontraditional forms of collateral and the critical development assistance needed to make their businesses successful.
IICDC Lending Parameters and Requirements:
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Microloans consist of small amounts of credit between $500 - $35,000 |
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Microloans are extended to low-income entrepreneurs for start-ups of microenterprises or for the expansion or stabilization of existing microenterprises. |
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The fixed interest rate is 3 points above prime on the day of the loan, but not lower than 7.5%. |
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Microloans have a maximum maturity of five years. |
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Microloan funds may be used for working capital, inventory, supplies, furniture, fixtures, machinery, tools, equipment, building renovation, and/or leasehold improvements. |
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Applicants must be at least 21. |
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Flexible credit history requirements. |
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A minimum 20% investment from the borrower is required. |
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$25 application fee and additional closing costs. |
The IICDC is helping low-income residents and minorities move forward in their economic lives. In turn, it is helping stabilize City neighborhoods. Microenterprise loan recipients have opened small businesses in the Bevo and South Grand districts; they buy homes and open businesses in the Dutchtown, Gravois Park, Cherokee and other south side neighborhoods. Our microenterprise loans are helping revitalize each of these neighborhoods, all of which were showing signs of decay. And immigrant populations stabilize and in fact grow our City’s population.
Contact Information:
Kathleen Delpha, President & CEO, IICDC
(314) 773-9090 ext. 156
