Frequently Asked Questions
Learn more about our Small Business Loans and Group Financial Coaching
HMFI disburses loans to small business owners who aim to grow their business. Our organization makes sure to take into account both quantitative and qualitative factors when deciding to whom we disburse our loans. HMFI looks for business owners who have low levels of revolving debt and consistent bank payments, along with looking for clients who are passionate and genuine individuals! We have helped invest in a variety of businesses, such as catering, food trucks, hairstyling, bookkeeping, and more. Check out our Success Stories page to see some of our recent loan dispersal recipients!
Unfortunately, we can only evaluate businesses which have been operating in the DC area for at least half a year. This policy allows us to be most effective in providing capital at our scale. If you are just starting a business and looking for financing, we encourage you to reach out after the startup phase is over!
We offer two types of loans, our Small Business Loan (SBL) and our Builder Loan. Our Small Business Loans range from $1,000 to $10,000, and we offer them at a fixed 1% annual interest rate for 6-24 months. Our Builder Loans range from $500 to $1,000 at a fixed 1% annual interest rate for up to 12 months.
HMFI is a registered 501(c)3 non-profit organization recognized by the federal government. Through responsible lending practices and low costs, we are able to structure our loans so they remain reasonably priced for our clients.
While we limit our individual loans to $10,000 each, we are open to the process of refinancing following at least six months of successful payments. Additionally, we have lasting partnerships with other organizations that may be more fit to assist your needs.
Other than the basic personal information submitted in the online application, we ask for:
- Bank statements for the last 3 months from all accounts
- Proof of income (i.e. pay stubs)
- Record of business revenues and expenses from the last 3 months (i.e. business ledger)
- Documented use of funds
- Credit report
- 4 character references
We take a holistic approach to reviewing applications. Rather than looking at credit score and traditional measures, we focus on payment history, cash flows, desired use of funds, and character references to evaluate a client’s fit for our loan product. To learn more about our the factors considered in our underwriting process, visit our Small Business Loan page.
While we have a holistic approach to underwriting, it is important for us to understand your existing financial obligations when determining the appropriate loan size. We employ a “soft pull” of your report, avoiding the negative impact that a commercial lender’s “hard pull” would have.
We understand that the required documents reveal substantial information about our clients’ lives. If you are concerned about providing information through our website or email, we encourage you to apply with as much as you can, and our loan officer will be able to discuss your case over the phone or in-person.