Loan Program FAQs: General

As of June 1, 2023

1. What are the different financing products offered by Business Consortium Fund?

We offer term loans up to five years and credit lines renewable annually.
Loan repayment is required to be via automatic monthly payments from the borrower’s business checking account.

2. I recently started my business. Do I qualify for a loan?

You must be in business at least two (2) years to qualify for the NMSDC “In This Together” Microloan Fund which offers loans up to $15,000. (Funding is limited for this program, and is available until the funds are exhausted)
You must be in business for at least three (3) years to qualify for all other loan programs.

3. Is there a minimum credit score to be considered for a loan from BCF?

For loans up to $75,000, a minimum credit score of 620 for all guarantors will be required.
For all loans over $75,000, a minimum credit score of 650 will be required. Scores lower than 650 will be considered on a case-by-case basis.

4. This is a business loan. Do I have to provide a personal guarantee?

Without exception, BCF requires a personal guarantee on all business loans for all owners of 10 percent (10%) or more of the ownership shares of the business.
If the business is owned fully or partially by a Limited Liability Company (LLC) or trust, that entity will have to guarantee the loan as well.

5. What interest rates do you charge?

BCF provides competitive loan rates for all loan levels.

The rates for microloans ranging from $5,000 to $100,000 are 9% to 12% fixed
There are promotional microloan rates with limited availability as low as 3% APR for a maximum term of 36 months. These special rate programs are available until all funds are exhausted.
Rates may vary and could change due to government policy actions.

6. What can I utilize the loan for?

You can utilize the loan for major projects as working capital, upgrades to your information technology, equipment purchases, business acquisitions, inventory, lease-hold improvements, relocation, and other uses that are acceptable to Business Consortium Fund and its affiliates.

7. How long does it take for the loan to get approved from the time I apply?

In most cases, it takes up to 14 days from completed application to closing for loans up to $100,000.
For loans over $100,000, loans can take 4-6 weeks to close on average, depending on the complexity of the loan.
Loans with real estate collateral can take up longer than 6 weeks.