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FAMU Credit Union creates $1 million microloan program for women, minority business owners

Posted at 3:59 PM, Feb 07, 2021
and last updated 2021-02-07 15:59:56-05

TALLAHASSEE, Fla. (WTXL) — The FAMU Credit Union has partnered with Leon County and the Office of Economic Vitality to create a $1 million microlending program that will specifically target women and minority owners of small business enterprises in Leon County.

The money for the revolving loan initiative comes from the Coronavirus Aid, Relief and Economic Security Act (CARES); a federal economic stimulus bill that provides for payments to State, Local and Tribal governments navigating the impact of the COVID-19 outbreak.

“The new microloan program we're offering to minority and women business owners can provide them with the immediate capital that often serves as the catalyst to jump-start large scale efforts that attract large-scale revenue," said Sheilah Montgomery, the president and CEO of the FAMU Federal Credit Union.

Montgomery also said the FAMUFCU will bring up to $250,000 to the ‘table’ each year to be used for administrative and operational costs associated with the initiative.

Called SmartSteps, this aptly-named project promises to deliver additional perks, convenience, and flexibility business borrowers will appreciate:

  • Microloans up to $50,000 with a quick turnaround time
  • Lower credit scores considered
  • Negotiable repayment terms
  • Lower interest rates (three to four precent)
  • Loans can be used toward a business line of credit, business equipment, operating capital or other funding as negotiated
  • No collateral required for loans under $15,000 if no specific credit risk
  • $25 application fee
  • Technical assistance and referrals to other resources

For more information about the FAMU Federal Credit Union and the SmartSteps Microlending Initiative, call Sheilah Montgomery, President/CEO, FAMU Federal Credit Union at (850) 222-4541, or ReAndra Clayton at (850) 300-7281.