The answer to that question is, well it depends. There are many different types of microloans that are both debt financed as well as equity financed. For example in this application for a microloan you must bring all of the following:
• $100 (non-refundable)
• Solid co-signer, if your credit score is under 620.
• Business Plan, including expected cash revenues and expenses, by month, for one year.
• Federal Tax returns for the last 2 years.
• Two I.D.’s: (one must have your picture). If U.S. Citizen, passport, birth certificate, voter Id.
card or Certificate of Naturalization. If refugee/asylee, I-94 or Green Card.
• Personal Financial Statement. We have an SBA form for you to fill out.
• 3 Most recent bank statements and pay stubs.
• Personal or commercial driver’s license and driving record if vehicle is to be purchased with
the loan or is important to the business.
• For an existing business: income statement, balance sheet, and Federal tax returns, all for the
last 2 years, 3 years, if available.
• If a co-signer is needed - co-signer form, credit history, Federal tax returns for last 2 years,
and two I.D.’s , proof of being moderate income.
• If a co-signer is needed –3 recent bank statements, recent pay stub, collateral statement, and
proof of ownership of any collateral.
So in the case of the Enterprise Development Group, yes, you do need a cosigner. But only if you have a credit score below 620. Other institutions will have other stipulations. If you take a look at the SBAs requirements for a MicroLoan with bad credit you'll find that you may not need a cosigner. The key here is to do your research.
A lot of the time you reduce your research time by speaking to someone within the bank or finance office instead of searching online for your answers. A good friend of mine recently did this with BlueOrchard because he found their website difficult to navigate and in the end he was able to get the financing he needed. So don't be shy, make some phone calls! Hell, BlueOrchard even has a facebook, you could try messaging them on there!
• $100 (non-refundable)
• Solid co-signer, if your credit score is under 620.
• Business Plan, including expected cash revenues and expenses, by month, for one year.
• Federal Tax returns for the last 2 years.
• Two I.D.’s: (one must have your picture). If U.S. Citizen, passport, birth certificate, voter Id.
card or Certificate of Naturalization. If refugee/asylee, I-94 or Green Card.
• Personal Financial Statement. We have an SBA form for you to fill out.
• 3 Most recent bank statements and pay stubs.
• Personal or commercial driver’s license and driving record if vehicle is to be purchased with
the loan or is important to the business.
• For an existing business: income statement, balance sheet, and Federal tax returns, all for the
last 2 years, 3 years, if available.
• If a co-signer is needed - co-signer form, credit history, Federal tax returns for last 2 years,
and two I.D.’s , proof of being moderate income.
• If a co-signer is needed –3 recent bank statements, recent pay stub, collateral statement, and
proof of ownership of any collateral.
So in the case of the Enterprise Development Group, yes, you do need a cosigner. But only if you have a credit score below 620. Other institutions will have other stipulations. If you take a look at the SBAs requirements for a MicroLoan with bad credit you'll find that you may not need a cosigner. The key here is to do your research.
A lot of the time you reduce your research time by speaking to someone within the bank or finance office instead of searching online for your answers. A good friend of mine recently did this with BlueOrchard because he found their website difficult to navigate and in the end he was able to get the financing he needed. So don't be shy, make some phone calls! Hell, BlueOrchard even has a facebook, you could try messaging them on there!
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