Alice’s Integrity* Loan Fund
Mission Statement
Provide limited capital to individuals who commit to being self-sustaining entrepreneurs. These funds are to be used for start-up business ventures or to enhance existing business growth opportunities.
Purpose
The purpose of Alice’s Integrity* Loan Fund (FUND) is to encourage self-sufficiency, self-discipline, and social responsibility through education, a business plan, and personal encouragement to achieve their personal goals.
This Fund’s source is from Alice’s prudent use of personal income over a lifetime and a belief that personal integrity is the most important criteria for the expectation that a loan will be repaid. This will permit the FUND to be used over and over again to help others get a start. This implies a responsibility on the part of a loan recipient to commit to helping others when their success permits.
Applicants for a loan may or not have been turned down by a financial institution. This Fund is not intended primarily for individuals with better than average credit scores. Credit scores less than average will not be a deterrent to loan approval if evidence can be provided that indicates that the reason for a negative report has been corrected. Bankruptcy in itself is not sufficient reason for a loan denial.
Alice’s Integrity* Loan Fund is not intended to re-finance existing debt even though it might be beneficial to the borrower. Alice’s Integrity* Loan Fund is intended to support initiative to achieve self-sufficiency and to generate profit for the individual at a reasonable rate of interest and monthly payments.
Loan Application Criteria
Applicants are to be evaluated by 4 specific standards, Character, Capacity, Commitment, and Capital.
1. Character 40%
Applicant must demonstrate by record, a payment history. Demonstrate definitive service to others and absence of destructive personal behavior or addiction.
2. Capacity 30%
The ability of an individual to carry out their business idea; the individual loan applicant must commit to completion of a business plan and their program for implementation of the plan.
3. Commitment 20%
The responsibility of the individual borrowing money from the Fund is to repay the loan; and to commit to helping another individual to follow sound stewardship with their income.
4. Capital 10%
It is not the intention of the Fund to require collateral: however some type of measureable equity must be provided. Equipment or inventory purchased with loans from this fund should not be pledged as collateral to other lenders.
It is the Fund’s intent to teach responsible use of credit. Understand that Personal Honor pays loans. Most importantly, the borrower must have the pride to Honor their word and keep their reputation sound.
*Integrity: “an uncompromising adherence to a code of moral, artistic or other values; utter, sincerity, honesty, and candor; avoidance of deception, expediency, artificiality, or shallowness of any kind.” (Webster’s Third International Dictionary)
Terms
Maximum initial loan amount will be $5,000.00 with a fixed interest rate of 6.0%. The maximum term is 36 months with monthly payments.
If a $5,000.00 loan has been paid as agreed, applications for up to $10,000.00 will be considered.
A $25.00 Servicing Fee will be charged for all loans at time of submission of the loan application; check or money order should be made payable to the servicing bank. (Cornhusker Bank.)
Loan payments can only be deferred up to three (3) months.
Collateral
No collateral will be taken. However, evidence should be provided to assure that funds are used for the intended purpose. A paid invoice or a copy of a legitimate transaction receipt, Cashier’s check, or a direct payment can be sent to directly to the designated use provider.
Delinquencies
Community Development Resources will provide the appropriate loan forms and follow-up on past due loan payments when notified by the institution processing the monthly payments. It is recommended that a Lead Volunteer who was involved with the borrower’s initial application and who has kept in touch with the applicant, be alerted to the delinquency. To enhance future credit availability, all payment records will be reported to the Credit Bureau
Services of Community Development Resources
Community Development Resources (“CDR”) will administer the loan program described in this Program Statement. CDR will provide its expertise, experience and credibility in the micro-enterprise field. CDR will also disseminate information about the availability of loans; assist potential borrowers through the loan application process; and coordinate Borrower’s contacts with SCORE, NBDC or other volunteers.
Qualifying Borrowers
Borrower(s) must be a resident of Lancaster County in Nebraska. Any request for an exception must be fully documented as to the benefits to the Lancaster County area.
Privacy
When a loan is made, every effort will be made not to disclose any confidential loan information. All parties involved must sign a Confidentiality Agreement. However, applicants must be open to educational opportunities and volunteer assistance, if available, to enhance their future success which would involve sharing of personal and business information.