North Side’s Small Business Development Fund Gets Rolling

North Side’s Small Business Development Fund
Gets Rolling

After she and her husband invested over $70,000 into their start up car detailing business, Rolling Clean Car Wash, Mrs. Denise Buckman-Morris and her husband Kevin Morris were almost ready to open their doors.  However, they realized they needed some working capital to get the operation off the ground.  Having been members of the North Side Community Federal Credit Union (North Side) in the Uptown neighborhood for several years, they became aware of the new Small Business Development Fund (SBDF).  In June 2011, they closed on a $15,000 loan to help with marketing, salary and general operation costs for the business, which is located in Chicago’s Austin Community.

North Side’s new SBDF allows entrepreneurs the funding to help start a business or expand an existing business.  In February of this year, North Side received funds from the Office of the City Treasurer to offer Chicago-based small businesses micro loans. An existing business can borrow up to $35,000 while a start up operation can qualify for up to $15,000.  Typically, these loans are used for build out, working capital and for acquiring machinery, tools and inventory.  The loan term is up to 5 years at a prime +2% interest rate.  As of June 2011, the current rate is 5.25%.

“This loan allowed us to get a great jumpstart on the business and provide some cushion to fall back on.  It’s a great program because it helps start small businesses when they can’t get help elsewhere,” says Buckman.  Buckman projects that loan will enable the hiring of ten full time and thirteen part time employees and provide opportunities and training in a community that has high unemployment and a need for business investment.  “Job creation and retention are key elements that we look for in a loan application,” says Jennifer Sierecki, Manager and CEO of North Side.  “Small business growth is vital in developing and sustaining our communities.

North Side Community Federal Credit Union is a not-for-profit community development credit union that has been providing affordable banking products and alternative lending resources since 1974.  North Side’s mission is to promote the financial well-being of Chicago’s diverse community by providing assistance in personal finance, credit, debit and housing counseling, as well as capital to help to launch and sustain local businesses.

North Side is outreaching to Chicago neighborhood chambers of commerce and community development organizations to help spread the word about the new loan fund.  As a collaborating partner, the Jane Adams Small Business Development Center provides technical assistance for prospective borrowers.

 

Prospective applicants can download an application on North Side’s website at http://www.northsidecommunityfcu.org and fax, scan and email, or drop it off at the credit union at 1011 W.
Lawrence Ave. in Uptown or at their branch-in-residence at Howard Area Employment Resource Center, 1623 W. Howard St. in Rogers Park.  The Rogers Park applicant is open from 11:00 am – 1:00 pm every Thursday.  Once pre-qualified, the applicant will be asked to provide additional documentation, including a business plan, cash flow projections and personal tax returns, for the full loan application.  A decision will be made within 10 to 15 business days.  For more information on the loan program, visit http://www.northsidecommunityfcu.org or contact Tom Laures, Small Business Loan Officer at (773)769-5800 x 225.

 

photo caption: Owners of Rolling Clean Car Wash, Denise Buckman-Morris and husband Kevin Morris, with Tom Laures, North SIde’s Small Business Loan Officer

 

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