The Yukon Micro Loan Program is a tiered lending program—starting at $3,000 for a first loan—to individuals who want to start, maintain or expand small businesses. Loan terms range from three months to three years. Applicants who successfully repay their first micro loan can apply for gradually higher amounts of funding for a future loan (maximum $12,000 for a fourth loan). Additionally, those who repay their loans in a timely fashion may qualify for interest rate reductions on subsequent loans.
Unlike other loan programs, the Yukon Micro Loan Program focuses on the applicant’s character, trustworthiness and personal commitment rather than on the applicant’s credit history and amount of collateral. In this way, the Yukon Micro Loan Program makes funds available to entrepreneurs who might not qualify for larger amounts of financing under more traditional loan programs. Microloans can help an individual establish credit or improve a poor credit history.
Micro loans can be used for business purposes such as:
- Buying or leasing equipment, tools or computers
- Making leasehold improvements
- Purchasing craft materials, supplies and inventory
- Paying first and last month’s rent on a commercial space
Micro loans cannot be used to refinance existing loans or to pay off personal debt.
Yukon Micro Loan Program recipients are entitled to take selected däna Näye Ventures training courses at no cost.