No, the SEED Program participants are eligible for a loan of up to $35,000 based on the character of the participant and the overall business concept.
No, following the completion of the training program all graduating participants are eligible to pitch their business model to the loan committee. The loan committee will determine the funding based on the character of the participant and the overall business model.
No, the SEED Program accepts start-up businesses and existing business owners into the program.
All participants of the SEED Program will be expected to:
There are no fees or costs to participate in the SEED Program.
If your business has multiple owners, each owner of the business must complete all aspects of the application process (application, interview, entrepreneurial assessment, credit report review and video submission), attend the initial program meeting, all program classes and the funding pitch.
If one or more partner in the business is unable/unwilling to participate in the program, the business cannot be accepted into the program and/or be considered for funding.
The SEED Program evaluates character prior to acceptance and throughout the course of the program. Key factors in determining an applicant/participants character will include:
Unfortunately the SEED program is unable to accept any restaurants, cafes, bars, day care centers, and pre-schools at this time.
Rarely have SEED participants been able to utilize the SEED program as a component of a multiple source start-up/expansion. Requirements will vary based on the project.
If you are looking to leverage multiple funding sources to start/expand your business, you will need to have all of the funding approvals and lender commitment letters in place prior to accessing any of the SEED Funding.
The SEED loan term is 84 months, with interest deferred for the initial 6 months of your loan. The current SEED loan interest rate is 9% and there are no prepayment penalties for early payoff of your loan.
*Note, interest rates are subject to change prior to the start of a program. Check with your SEED Coordinator if you have any questions about the current interest rate prior to the start of a program. Interest will accumulate in your loan during the 6 month deferral period.
If you receive a preliminary funding approval following the loan pitch, the SEFCU underwriters will make a credit inquiry with one of the three credit bureaus, which could impact your credit score for up to two years.
This “hit” is usually small, sometimes less than 5 points, and depends on how many other inquiries have recently been made. Beyond the initial credit inquiry, your credit score should not be impacted as long as you make your payments on time.