HFLA Business loans are intended to addresses small business and start-up need for capital when traditional lenders are unwilling to take on the risk. HFLA’s 0% interest loans enable businesses to meet demand and grow their company.

For an online application click here.

HFLA Business Loans address small businesses and start-ups’ need for capital when traditional lenders are unwilling to take on the risk.

HFLA’s 0% interest loans enable businesses to meet demand and grow their company.

Qualifications: 

• Live and do business in Cuyahoga, Lake, Lorain, Geauga, Mahoning, Medina, Portage, Summit, or Trumbull counties.
• Have an income with the ability to repay the loan on a monthly basis.
• Lack the ability to obtain the needed funds from a conventional lender like a bank or credit union.

 All applications require a guarantor:

• All business loans are issued in the name of the business owner.
• All owners with a greater than 20% ownership stake in the business must be guarantors and must provide the same personal supporting documents as the primary owner.
• Credit will be checked for all guarantors and co-borrowers with an emphasis on payment history, not a three-digit score.

Additional information:

• HFLA will request additional documents during the loan process. This includes the most recent tax return for both the business and the owners. This is a requirement to move forward with the application.
• If a loan is approved, HFLA may file a lien on the company’s assets
• The maximum loan amount is $20,000
• There are no prepayment penalties or fees.
• All repayments commence in the month following the initial loan disbursement.
• The repayment schedule for Business Loans is as follows:

• Loans up to $4,000 must be repaid within 12-15 months

• Loans up to $8,000 must be repaid within 24 months

• Loans up to $15,000 must be repaid within 36 months

• Loans up to $20,000 must be repaid within 48 months

• You will be asked to submit a detailed overview of your business. This will include financial documents such as a business projection and historical financial statements like a balance sheet and income statements.  If you need assistance preparing these documents, HFLA can refer you to partners who can help. In addition to these three documents, we will ask to see the following:

• Operating Agreement

• Proof of current insurance for the business

• Lease agreement (if applicable)

• Business plan (optional but very helpful)

• Most recent business tax return

• Two most recent months of business bank statements

• Resumes of all business owners

• Statement and details of business debt

• Personal and household financial information in the form of:

• • • Two most recent months of personal bank statements

• • • Personal tax returns

• • • A household budget (template will be provided to you)

• • • Pay stubs or proof of any additional income that the applicant is receiving

• • • Statement and details of personal debt

• • • If there is additional household income that you would like us to consider in your application (such as spouse/partner income), we will ask to see documentation of that income and recent bank statements

• Additional collateral may be requested at the discretion of the loan committee/board
• While HFLA does support start-up businesses, we do not give loans to just “an idea”. The business needs to show income and expenses from at least three months prior to the application.

Learn more: How to Apply

Click here to download application.  

Featured image: Businesses Loan Recipient, Angela and her daughter; Owner of PipeNHot Grill.