Micro Lending

The Community Development Partnership (CDP) is committed to supporting economic development within our community through programs and education that foster the start-up and growth of local businesses, including those that tackle the unique business challenges of the fishing and aquaculture industries, home-based businesses, artists and other crafts people on the Lower Cape.

About our Lending Program

The Community Development Partnership (CDP) established the Micro Loan program with a grant from the Massachusetts Department of Housing and Community Development (DHCD) through the Town of Chatham.

Under the Micro Loan Program, the CDP provides loans to qualified businesses of up to $40,000. These loans can be used for working capital, real estate for the use of small business, and for machinery and equipment.

Loan terms are normally up to five years. There are options to defer principal payments, amortize over longer periods or establish seasonal schedules as needed. Rates are competitive and will use the Prime Lending Rate as an index to assess loan rates.

In addition to the Micro Loan program, the CDP also offers a short-term loan option. Up to $10,000 may be borrowed for a period of a few months to a year. Interest is paid monthly and principal is repaid at the end of the loan term.

Success Stories:

Photo Courtesy of Abigail Chapman.
Halcyon Farm – Cape Cod native Lucas Dinwiddie has spent the past 4 years growing his new business, Halcyon Farm in Brewster. With a focus on high quality produce, Dinwiddie is utilizing an acre of land to produce beautiful lettuces, radishes, beans, peas, herbs and a variety of cherry tomatoes. As he says, “We grow what works”.

Earlier this year Dinwiddie received a loan through the CDP’s Micro Loan Program. Focused on a new well and irrigation upgrades to take his business to the next level, he needed a match to a grant he had received from the MA Department of Agricultural Resources and the CDP was a fit. Today, Dinwiddie is pleased with the impact of the investment, resulting in greater yield and an even higher quality product. He commented, “The drilling of our irrigation well was a huge last piece of the Halcyon Farm puzzle. The MEGA grant and matching CDP micro-loan allowed me the financial advantage to implement a significant operational system very quickly, increasing revenue in the short term and ensuring a stable water source for the long term.”

You can find Halcyon produce at the Orleans and Wellfleet Farmers Markets, in dishes at local restaurants and at his roadside stand along Route 6A in Brewster (3915 Main Street). And, visit Halcyon Farm on Facebook.



Shine Boutique – You might not have been into Shine Boutique yet but if you drive down Route 28 in Harwichport you will have seen the 2 mannequins that show off her latest styles and promote her small retail store. As a first time business owner Kerry O’Brien Berto did not qualify for traditional bank funding and was referred to the CDP for assistance. The CDP liked her business model and willingness to keep her part time job at the Brewster Fish House while she grew the dream to own a women’s retail clothing store. “The CDP helped me have the funds to purchase additional inventory and has supported me throughout my first year.” – Kerry

Visit Shine’s Website and see what this cute Harwichport boutique has to offer.



Mary DeAngelis, Clothing Designer & Wholesaler

Mary DeAngelis has achieved tremendous success as a clothing designer and wholesaler, but she says she wouldn’t be anywhere without the Community Development Partnership’s Micro Loan Program. “I was working out of my house and driving around in my car to visit stores and show them my goods. I knew that if I was going to get my business off of the ground I needed to be showing at the New York trade shows, where buyers from boutiques and stores all over the country come to purchase goods.” But DeAngelis knew it was going to take more than creativity and drive to get to New York – it was going to take money. She wrote a business plan and approached all of the local banks, but was always turned away due to lack of collateral. “Every bank turned me down. I went everywhere, but they wouldn’t give me the time of day.” Then a friend told her about the Community Development Partnership.

DeAngelis was able to get some much needed funding through the CDP’s Micro Loan Program, as well as an introduction to SEED, who provided additional funding. DeAngelis used these loans to grow her business – purchasing a design studio in Provincetown and increasing her wholesale distribution from 2 stores to over 40.

“I wouldn’t be anywhere if it wasn’t for the CDP. I am a true small business. I don’t want to leave the Cape. I use as many local resources as I can. I employ as many local people as I can. But if you’re a small business person and you don’t own property, there is no way to get money. The banks just won’t take a risk. The CDP is the only thing we’ve got.”

View her website to learn more about The Mary DeAngelis Company.

Eligibility Criteria

Businesses must meet several criteria in order to qualify for our Micro Loan program. Please read through these criteria carefully before completing a loan application.

Type of Business Existing and start-up manufacturing, retail, wholesale and service businesses having five employees or fewer at the time of application and generally meeting the definition of small businesses. Owners must demonstrate low or low-to-moderate income in accordance with Federal definitions.

Location of Business The program provides assistance to small businesses in Harwich, Chatham, Brewster, Orleans, Eastham, Wellfleet, Truro and Provincetown.

Jobs Creation Requirement The small business has to demonstrate the potential for job creation, especially jobs which would be available to low- and moderate-income individuals. Jobs creation compliance will be monitored by the CDP semi-annually.

Management Capacity The small business has to demonstrate management capacity and/or willingness to accept close management consultation and technical assistance throughout the life of the loan, if necessary.

Use of Funds Micro lending funds from the Community Development Partnership can be used to finance, in general, any customary capital or operating needs of the business with the exception of:

  • Payment of delinquent taxes
  • Product development costs
  • Organizational costs
  • Debt refinancing

Financing Gap The small business has to demonstrate the lack of adequate capital or loan funds to fully finance the business needs and must have been rejected by a bank.

Loan Application Process

In order to process your business loan application in a timely manner, the following documents need to be submitted for a completed loan package:

  • Application including personal financial statement
  • Personal tax returns for the last two years (three years if a sole proprietorship)
  • Copy of drivers license for sole proprietor or copy of Articles of Organization for other types of businesses.
  • Business References
  • 2 Years cash flow projections on a month-by month basis.
  • Lease (if applicable)
  • Inventory listing
  • Equipment listing

In addition, the following documents may need to be submitted, depending on the status of your business.

Start-Ups:

  • A completed business plan

Existing Businesses (if not included in your business plan)

  • A brief written history of your business; a description of your products and services; a summary of your previous business experience; a description of the key risks or challenges in your business and how you manage against them; and a description of the two main strengths of your business.
  • Current year to date financial statements (if year-end financials are over six months old)
  • Business tax returns for the last two years.
  • Current balance sheet.

The CDP provides Technical Assistance to applicants in developing the loan application, including a business plan and financial projections. Contact us for more information or to schedule an appointment.

Click here to Download CDP Micro Loan Application

Loan Decisions

Decisions on loans will be made on the basis of the following:

  • A small business’ need for a loan
  • A small business’ ability to create jobs and promote community service
  • The character and management ability of the principals
  • Cash flow available to repay the loan
  • Collateral for the loan

For more information about the Community Development Partnership’s Micro Loan Program, please contact Pam Andersen, Business and Credit Program Manager, at (508) 240-7873 ex 18 or via email.

Resources

MA Small Business Development Center

SCORE of Cape Cod

SEED

Small Business Administration

Last updated: May 12, 2014

Photos