What We Are Looking for in Our Borrowers


Your loan will have a much higher chance at success if the following loan conditions are met:

 

• Good character;
• Ability and experience to operate a business of the proposed type, size and scope successfully and profitably;
• Sufficient invested capital (not loaned) so that together with PPLF loan funds the business can operate on a sound debt to capital ratio basis;
• Historical earnings and cash flow record together with future projected financial trends are  sufficient to repay the loan and to provide the owners with a reasonable level of personal income;
• Reasonable business and personal collateral should be available to secure the loan and provide for a secondary source of repayment for the loan whenever possible.

 

Understanding the Risks of Borrowing

 

Opening Doors is a nonprofit organization dedicated to serving the community.  As such we want all of our potential borrowers to fully understand the risks they are taking when they accept a loan.  A small business loan which is paid back timely can help your business and build your credit; a loan which is not paid back can cause negative consequences for years.

 

Consequences of Failure to Pay Back a Loan:

  • It will negatively impact both your credit score and credit report. This means your ability to apply for consumer bank loans, automobile loans, and/or mortgages will be seriously affected. In addition, it may negatively affect your ability to rent an apartment or business space, and it may impact an employer's decision about whether or not to hire you.
  • Each month Opening Doors files a mandatory credit report to Trans Union, Equifax, and Experian. Any delinquent activity past 30 days on your account will have a serious negative impact on your credit.
  • If the loan becomes a loss, Opening Doors will file a 1099C IRS tax form which the IRS may treat  as income in the year it is filed and you may be required to pay taxes on the amount submitted on the form.
  • When you pledge personal assets as collateral you are authorizing Opening Doors to sell your items in the event you and your cosigner are not able to repay your loan. If the collateral does not cover the entire loan balance, both the borrower and the co-signer are still liable for the outstanding balance.

Loan Application Process


STEP 1: Complete online Pre-Application.  
Our loan specialists will use this to determine whether you are eligible for our loan program.

STEP 2: An Opening Doors loan specialist will contact you.
We will collect additional information to determine a loan amount you might qualify for.

 

Step 3: Submit required documents

STEP 4: Opening Doors’ loan committee reviews your application.
This process takes approximately 4 - 6 weeks. During this time your loan specialist will keep you updated.

STEP 5: Your loan specialist informs you of the loan committee's decision.
The committee may have provided a conditional “yes,” meaning you will need to provide additional information or carry out certain work before the loan can be issued.

 

After your loan has been approved you will come to our office, sign all final loan documents, and receive your check. At this time you will make an appointment for your first “post-loan” counseling session.