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General FAQ
Loan FAQ
General FAQ
What is PDP?
What does PDP do?
What is a microenterprise?
How can I use PDP resources?
How do I help?
What is PDP?
PDP stands for the Philadelphia Development Partnership, a non-profit
organization whose mission is to promote economic independence for community
entrepreneurs by providing business training, one-on-one business counseling,
access to peer networks, and small business loans.
We are currently known by many names: PDP, Community Capital Works (CCW),
Chester Microenterprise Partnership (CMP). These are various titles for our loan
fund, peer programs, and Chester area office. But rest assured; we are one in
the same organization, and working together to serve area entrepreneurs.
What does PDP do?
In short, we work with the smallest of small businesses all over greater Philly—over
400 individuals per year who are either starting up or expanding business ventures.
We provide business skills training, guidance from industry professionals, and
access to small loans, peer support and networking opportunities.
What is a microenterprise?
This is an industry term for the smallest of small businesses. Microenterprises
often have less than five employees, and often home-based. They are defined as
requiring less than $35,000 in capital to start-up or expand, and can generate
up to $50,000 in annual sales. A microentrepreneur is typically someone who is
looking for a way to earn a living or create additional income by owning his/her
own business.
How can I use PDP resources?
For Start-Ups: You can view information about Our Programs and Calendar to
learn more about our business skills training courses, where you will learn the
basics of how to turn your business idea into reality. Contact PDP to
join a peer group, apply for a loan or enroll in business training or workshops.
For Established Businesses: Please consult the Loan FAQs to
see if our loan fund could help you grow your business, and read information
about Our Programs and Calendar. Contact PDP to join a peer
group, apply for a loan or enroll in business training or workshops.
How do I help?
Support your neighborhood businesses! Get involved!
PDP often has volunteer opportunities and internships available, from communications
and events to other special project support. To inquire about current opportunities,
please contact PDP: 215.545.3100, ext. 225.
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Loan FAQ
What is CCW?
Does CCW give grants?
What is a micro loan?
How is CCW different
than other loan programs?
Am I eligible?
Which loan product is appropriate for my business?
What can I use my loan for?
What loan amount should I request?
How does Peer Lending work?
How do I apply for the Peer Lending program?
How do I apply for a Small Business loan (SBL)?
How do you decide who gets a loan?
What happens after I submit my complete loan application?
What is CCW?
CCW stands for Community Capital Works, the name we have given to our micro loan
fund.
Does CCW give grants?
CCW provides loans to build small businesses. We do not provide grants.
What is a micro loan?
A micro loan is defined as a business loan of up to $35,000. PDP offers two types
of micro loans: Peer Loans and Small Business (SBL)
loans up to $25,000. As of the end of May 2007 the average PDP micro
loan amount was approximately $1,500.
How is CCW different than other loan programs?
Unlike other loan programs, clients are not required to provide collateral or
have a certain credit score in order to qualify for loans. We do this to allow
people who would not receive loans at traditional financial institutions to gain
access to credit. The peer support system for Peer Loans is also another distinguishing
feature; when clients gather at group meetings, they share successes and ideas
for solving business and personal problems. This support is perhaps the most
important part of the Peer Loan program.
Am I eligible?
Micro loans are intended for small ventures who want to grow into vibrant community
businesses. If you are passionate about your business, determined to find a way
to succeed, and haven’t been able to access the capital you need, then
a micro loan might be right for you.
Which loan is appropriate for my business?
Small Business (SBL) loans ranging from $500 to $25,000 are available to individuals
who have:
- Start-ups with a business plan and financial projections
- Established businesses with proven ability to repay
- Demonstrated effort to improve credit
- Ability to provide business assets or other collateral
Peer loan amounts begin at $500 and can increase to $5,000. This is a step
loan program, meaning that once you have successfully paid back your first loan
of $500, then you graduate to the $1,000 level, then the $1,500 level, etc. Peer
Loans are available to individuals who have:
- Joined a chartered group
- Established a business or have a business idea
- Completed a Business Development Assessment worksheet and cash flow
- Been approved by their group members
What can I use my loan for?
Approved loan uses:
- Inventory and equipment
- Advertising and marketing
- Working capital
- Building renovations
- Business acquisition
- Start-up costs
Loans may NOT be used for:
- Payment of delinquent or doubtful debt, delinquent taxes
- Investment or speculation
- Personal expenses
- Illegal or unethical purposes
What loan amount should I request?
Loan requests should be based on:
- Your ability to repay
- The amount necessary to grow your business
How does the Peer Lending work?
Peer Lending is based on a “village banking” model. According to
this model, community members, or “peers,” can help support one another
in growing and funding their businesses through facilitated monthly group meetings.
How do I apply for the Peer Lending program?
Your first step should be to attend a Community Capital Works Open House and
Information session. Open houses are held every other Thursday. Please visit
our Calendar to see when you’d like to attend, and Contact PDP in
order to register.
How do I apply for a Small Business loan (SBL)?
Contact PDP’s lending director at 215.545.3100 for an application. Refer
to our SBL Loan Fact Sheet, which details the documents to be submitted
with an SBL application.
How do you decide who gets a loan?
PDP is as flexible as possible in evaluating loan applications. Separate criteria
are used to evaluate each type of loan.
Peer group members award Peer Loans based on:
- Attendance and participation in peer group meetings
- Completion of a Business Development Assessment worksheet and cash flow
- Reasonable good faith in the borrower’s ability to run the business
and repay the loan
CCW’s loan committee awards Small Business loans (SBL) based
on:
- Proven passion for the business
- Direct or indirect business experience (eg. working in a bakery before applying
for a bakery loan.)
- Comprehensive business plan and financial projections
- Demonstrated effort to improve credit
- Ability to re-pay loan
What happens after I submit my complete loan application?
- Interview with a PDP representative.
- The loan committee made up of internal and external members reviews application.
Typically, the loan approval process takes 2-3 weeks.
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