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.