hope mercycorps factsheet

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					                                                    FACT SHEET
HOPE and MercyCorps are partnering to provide capital to entrepreneurs and small business owners affected by
Hurricanes Katrina and Rita. This business loan program leverages the resources of two community-based
organizations to provide business loans with a quick turnaround to small business owners in the Gulf Coast region.

Who are HOPE and MercyCorps?
Hope Community Credit Union (HOPE) is a low-income designated, community development credit union that
converts federally-insured deposits into financial services for economically distressed communities. HOPE's
membership consists of over 6,000 members, including low-income residents, socially-responsible individuals and
hundreds of congregations, nonprofits, banks, corporations, and mission-driven organizations. Since 1994
ECD/HOPE has generated over $200 million in financing for entrepreneurs, homebuyers and community
development projects, and directly benefited more than 25,000 individuals.
Mercy Corps’ Gulf Coast Recovery Program includes: a Neighborhood Revitalization that promotes self
sufficiency, jobs and economic opportunities; Comfort for Kids that gives psycho-social support to children, families,
teachers, and caregivers; Grants for youth-focused nonprofit organizations and schools to help them better provide
their social services in this time of need; ReClaim New Orleans, which is a “deconstruction” program that facilitates
salvaging condemned homes and recycling used building materials as an alternative to demolition; and economic
development loans for small businesses and entrepreneurs to help jumpstart local economies with services and retail
outlets that residents need to return to neighborhoods. Mercy Corps also works in 40 other countries around the
world to help communities recover from war, social upheaval and natural disasters. More information is available
online at www.mercycorps.com.

Micro Loan Guidelines
    Loan Structure
     Installment Term Loan
     Interest only option available for up to 90 days
     Monthly payment via ACH Debit

    Loan Amounts
     $1,000 to $15,000
     Funded by check or account deposit

    Terms:
     3 months to 48 months

    Interest Rate and Fees:
     Interest Rate – 8 %
     Service Fee – 5 % of loan amount. Service fee will be financed into loan.
     Late Fee – 10 % of the past due loan payment

    Eligible Purposes:
     Loans will be available for most business purpose that will help rebuild, restart or improve cash flow for the
         business
     No loans to businesses engaged in adult entertainment/pornography, multi-level marketing, guns and
         firearms, money lending, real estate development or illegal activities



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    Documents Required with Application:
     Signed application (borrower & coborrower)
     3 months of most recently available bank personal and business bank statements
     Current government-issued photo identification
     Verification of home and business address (e.g. current lease or utility bills)
     Last year’s tax return and/or year to date financial statements (if available)
     Home and business landlord reference if applicable
     2 supplier or business references, 1 personal reference
     Other documents as needed and available

    Underwriting Criteria:
     Underwriting will take into account effects of Hurricane Katrina on applicants’ credit and financial standing
     Adequate cash flow for repayment
     Acceptable credit report – low credit scores may require additional documentation and explanation
     No bankruptcy in last 12 months
     All accounts since discharged BK most be handled in satisfactory manner
     Limited number of collection items
     No outstanding tax liens or child support
     Collateral will be requested for all loans depending on availability
           o Vehicles, equipment, Personal and business assets are acceptable
           o Liens will be filed on all vehicles
           o UCC liens to be filed on all loans
     Coborrower(s)
           o All business partners and officers must coborrow. Family members with significant role in business
                may be required to coborrow.
           o Depending on business cash flow, additional coborrowers may be required
     Bank account with ECD/HOPE will be required
     Other criteria as may be developed by ECD/HOPE and Mercy Corps

    Restrictions:
     No loans to business located outside of areas to be designated by Mercy Corps.
     Minimum personal investment in business of 10% or more

Office Location
Central City Branch
1726 O. C. Haley Boulevard
New Orleans, LA 70113

HOPE Contact Information
 Telephone: 504-581-4673
 Web Sites: www.hopecu.org
 E-mail: info@hopecu.org




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posted:10/5/2012
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