Thriving Small Business Loan Program

Traditional financing and loan guidelines don’t always work for small businesses. So Prosper Portland created the Thriving Small Business loan program, which has been structured to address access-to-capital issues faced by underrepresented populations, including businesses owned by women and people of color and businesses owned by those in low-income areas. The program also connects entrepreneurs with targeted business support services such as business coaching, legal assistance, and classes (referred to as technical assistance). The program provides flexible financing and rewards startup and early phase companies that engage in technical assistance programs.

The Thriving Small Business Loan Program provides up to 100% financing for small businesses. It provides interest rate reduction of up to five percent for borrowers who successfully complete technical assistance during the term of the loan (2.5% reduction for completing 15 hours of technical assistance, balance upon completing 30 hours).

Prosper Portland Guidelines for Thriving Small Business Loan Program:

LOAN AMOUNT $25,000 to $50,000
ELIGIBLE USES Funds may be used for working capital, equipment purchases and business growth/expansion
MINIMUM TIME IN BUSINESS No minimum, but business must have an existing history of recurring sales
INTEREST RATE A fixed rate of 8% to 12%
PAYMENTS Principal and interest; May include up to one year of interest only payments
LOAN TERM Up to 10 years, not including the interest only period
LOAN FEE 2% of amount borrowed (fee may be rolled into the loan)
PERSONAL GUARANTEE Personal and/or corporate guaranties from all principals and entities with 20% ownership interest in the business
COLLATERAL Blanket UCC filing on company assets; UCC on specific equipment purchased with loan proceeds. If the business owner has and will provide real estate collateral, initial loan interest rate will reflect decreased risk.
BORROWER CREDIT Borrower and principals of company must not have unpaid tax liens or bankruptcies in the last seven years without written explanation acceptable to Prosper Portland. Any collections, charge-offs or past due payments over 60 days must have written explanation acceptable to Prosper Portland.
BUSINESS MANAGEMENT AND INDUSTRY EXPERIENCE Borrower should demonstrate sufficient business management and industry experience.