A local organization and one of the Dayton area's largest banks are reintroducing a lending program for underserved businesses.
The Dayton Human Relations Council's Minority Business Assistance Center (MBAC), in collaboration with First Financial Bank, have partnered on a micro-lending program for groups that historically have not had access to early-stage startup and expansion capital. Greater Cincinnati-based First Financial Bancorp committed $100,000 to the program, which offers loans of up to $10,000.
Here are the program details:
- The First Financial microloan amount is limited to a maximum of $10,000 per borrower.
- The Human Relations Council program offers an enhanced microloan feature with micro-lending to a maximum of $10,000 per borrower.
- Loans will carry a fixed interest rate.
- The repayment period is up to 48 months with no penalty for early repayment.
- The borrower has six months from the loan approval date to draw the funds.
- Borrowers are allowed one microloan at a time.
Here's who is eligible to apply, and how to apply:
- Businesses with revenues up to $500,000 per year and with with 10 or fewer employees.
- Minority business enterprises, defined as businesses that are at least 51% owned by a member of a minority group.
- Businesses that may not qualify for traditional bank financing due to loan size or other terms.
- Applications are available through the Dayton Human Relations Council.
- Start-up business applicants are recommended to provide a business plan that includes an explanation of how funds will be used and a description of business operations (not required).
The Greater Dayton Minority Business Assistance Center serves hundreds of minority-owned businesses in a 12-county region with business development resources and education programs. These include resources for improving access to funding opportunities through activities such as technical and business advising, marketing, and financial literacy. MBAC will recommend qualified applicants for loans through First Financial Bank.
“The MBAC has made it its mission to do everything we can to help our small businesses in this critical time,” Human Relations Council Executive Director Erica Fields said. “Too many times during the pandemic, small, minority and at-risk businesses within the Dayton community have missed out because the system simply doesn’t reach them. I am excited to work with First Financial to ensure that entrepreneurs will have easier access to capital essential for growth and success, regardless of background.”
First Financial Chief Corporate Responsibility Officer Roddell McCullough said the company is teaming up with the Human Relations Council to support local businesses, which will "ultimately help Dayton communities thrive through creation of greater economic opportunities."
“Providing access to working capital can make a huge impact on minority businesses, which are often undercapitalized and may experience difficulty accessing the credit they need for stability and growth," McCullough said.
First Financial is the fifth-largest bank in the Dayton region, according to DBJ research. The company had $2.9 billion in local deposits as of June 30, 2021. Its local market share is 8.4%, and it has 29 offices in the region.
