TruFund Small Business Loan
The purpose of TruFund Financial Services, Inc.’s Small Business Loan is to provide access to capital for small businesses.
Terms and Conditions:
- Locations: All states in the United States
- Amount: $50,000 – $750,000
- Amount for nonprofits: Up to $1,500,000
- Loan Structure: Term loans, Lines of credit
- Terms: Six months to five years.
- Interest Rate: 8-10%
- Application Fee: $250
- Closing Fee: 3.5% for New York applications; 3% for Louisiana and Alabama
Eligibility:
- Credit: Must have a 600 FICO credit score (below 600 may be approved in certain circumstances)
- Minimum Debt-Service Coverage Ratio: 1.10x
- Collateral Requirement: Business must have minimum revenue of $200,000 in prior year.
- Repayment Terms: Monthly P&I payments (may have interest-only period)
- Business Requirements: Business must have been in operation for at least one year
- Business Requirements for nonprofits: Nonprofit must have been in operation for at least three years
- Operating businesses must meet one of the following criteria:
- Located in a low-to-moderate income area
- Majority owned by woman
- Majority owned by minority or other disadvantaged group
- Employs low-moderate income workers
- Eligible nonprofit entity (Human or social services, arts/culture organizations)
Personal guarantee of all principals with 20% ownership or more. Nonprofit applicants are required to have board members and third-party guarantees.