PMHDC LOAN PROCESS
The loan process for all businesses starts after a one on one technical review assessment and the completion of a formal business plan.
PMHDC provides loans to small business owners in southern Arizona that reside in Yuma, Cochise, Santa Cruz, Pima, Pinal, Maricopa, Gila and Graham Counties. As a nonprofit organization, PMHDC’s mission is to help small businesses thrive through, technical assistance, lending money, promoting our clients’ businesses, linking them to small business resources, information and mentors, and providing networking opportunities.
- Existing and start-up businesses
- Citizen of US or permanent resident status
- No default on any federal loan
- Never convicted of a fraud-related felony
- Up to date on child support payments
- 20% or more ownership must be an applicant
All clients can request program and service information with PMHDC through our website:
1. Make an appointment with our Business Training Specialist/Business Counselor at one of our offices.
2. Submit an online Request for Information. To get the process started, but will take longer to complete the full process. Simply take 5 minutes to fill out the request for information form and our Business Training Specialist will contact you within 2 business days.
If you have any questions, please don’t hesitate to contact us! You may also call us at 1-800-293-2974 or make an appointment with our Business Training Specialist at one of our offices.
Factors We Consider
The PMHDC team will help determine whether the time is right for a small business loan for your business objectives. After the Business Training Specialist has assisted the client through the feasibility process the Community Development Officer can walk through the most critical elements of the loan application to assess your needs and financial position. The factors we consider in evaluating a loan request are:
1. Your passion, integrity and perseverance
These values are important predictors of the direction your business will take, how quickly it can grow, and how soon you may be able to pay off your loan.
2. Your ability to repay the loan
PMHDC loans must have three repayment sources, which may include any two of the following:
- Business and/or personal cash flow
- Co-signer (somebody you know who has the ability and will to help you repay your loan)
- Group Guarantee (a group of entrepreneurs who all apply for credit and are willing to co-sign each other’s loans)
Community Development Officers will verify business or personal income by a combination of:
- Tax returns
- Bank statements/Financial Statements/Pay Stubs
- Other documents
3. Credit history
The PMHDC team will walk you through the most important elements of your credit report. Like a home or a savings account, your credit report is an asset. The PMHDC team wants you to protect and build this asset. We can and do work with individuals who have no credit history or score.
Collateral refers to something you own that you value, which can be used to help secure your loan. This could include personal or business property, equipment, or other items.
If you do not yet meet our minimum standards for securing a small business loan, PMHDC will give you sound advice as to how to put things in order so that you can reapply for a loan in the future.
After the Business Training Specialist establishes business feasibility the client will receive the client loan checklist and the closing costs forms. The loan packaging process has four steps. In general it can take one week or up to four weeks to complete the full loan package.
- Step 1: Complete a full loan application
Submit a completed application to us by mail or in person with the application fee. Once your loan application is complete, you move on to step two.
- Step 2: Provide supporting documents
Once your loan application is completed, a Community Development Officer (CDO) will review it, give you some initial feedback, and request that you provide additional supporting documents. These documents often include tax returns, pay stubs, and/or financial statements if you have them. We will also require two official valid forms of identification.
- Step 3: Final decision
Once we have your application and supporting documents, our Loan Review Committee will make a decision whether to approve or deny your loan request.
- Step 4: In-person meeting with PMHDC CDO
When you are notified that your loan has been approved or denied, we schedule a meeting with CDO at one of our offices in Tucson, Arizona or San Luis, Arizona, or at one of our partner locations. We will meet our clients in person upon closing a loan, to fully discuss the terms and agreements and inform our clients of the various client support services we offer to help promote and support their business development.
Rates and Terms
- We offer business loans from $500 to $75,000. Terms range from twelve months to twenty years, depending on loan size and use of funds.
- PMHDC’s interest rates vary and reflect the market rate and loan risk. Rates are fixed over the life of the loan and charged on the outstanding principal balance. Our rates are comparable to commercial loan rates, and there is no extra cost to pay your loan early.
- When a loan is approved, we charge a community benefit fee due at your loan closing. This fee helps offset a portion of our lending, outreach costs, and supports the activities that help promote your business. The fee on most loans is a percentage of the loan amount ranging from 2% to 5%, and may be tax deductible for your business.
- PMHDC is a nonprofit organization, whose mission is protecting, supporting, and encouraging small businesses thrive. The money you pay in interest and fees funds some of the costs associated with our work providing capital and support services to entrepreneurs.