Frequently Asked Questions

If you have a question that is not answered below, use the Contact page to submit a question to the Loan Fund Manager.


Who can apply for a low interest loan?
Michigan residents with disabilities of all types -- including seniors with age-related hearing, vision, mobility and cognitive limitations. We also consider applications from employers – as long as the item is purchased for – and owned by -- a person with a disability. Applicants also must show that they plan to use the equipment to work from home or other approved telework location.
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What can I buy with my loan?
Loans can be used to purchase any type of equipment, and items related to the equipment, needed by entrepreneurs and employees with disabilities to work effectively from home. Examples include computers, sewing machines, kitchen appliances, fax machines, copiers, printers, home modifications, vehicles, if they're business-related, and other work-related equipment including adapted equipment. Loans also can be used for equipment-related services such as and Internet services, training, maintenance and repair.
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How much can I borrow?
Up to $20,000. Your loan amount will depend on your ability to repay the loan and the item(s) purchased with the loan.
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What are the loan terms?
The interest rate is 4.75%-7.75% depending upon your personal financial circumstances. There is no cost to apply. Terms are from one to five years depending upon what you buy and income available to repay the loan.
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How do I apply?
The Michigan Employment Loan Fund is a loan program, not a grant, which means you will have to repay your loan by making loan payments to Option 1 Credit Union. You may choose the day of the month your loan payments are due. Payments begin the month after your loan documents have been signed.


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What happens after I submit my application?
Your application will be reviewed by staff to see if it is complete. We also will obtain a credit report and and may call you or request an interview. Once the application is complete, it will be submitted to the Loan Committee. The Committee meets twice a month. If the Committee approves your application, the credit union we work with will contact you and let you know the next steps to close your loan. Once all closing documents are signed and returned to Option 1 Credit Union, they will send you a check addressed jointly to you and the vendor to cover your purchase. You sign over your portion of the check and give it to the vendor. If the loan is not approved, we will notify you by letter stating the reasons for your loan denial. This letter will also include other resources if possible.
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What criteria will be used to decide if I get a loan?
Both eligibility and ability to repay must be shown. Eligibility is established when you show that (a) you have a disability and (b) the item you want to buy qualifies as equipment for telework. Ability to repay is evaluated on the basis of income, expenses, current debt levels, availability of other resources and your credit history. We also look at your employment or business plan and work history.
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My credit is not great. Will that disqualify me?
If you have poor credit or a history of bankruptcy, your circumstances will be evaluated on a case by case basis. You will not be automatically disqualified. The Michigan Employment Loan Fund's typical borrower has one or more weaknesses that prevent them from accessing loans from a traditional bank. The MELF is designed to be more flexible than traditional banks with a focus on the particular needs of borrowers with disabilities. Staff will also help you identify steps you can take to improve your chances of qualifying (e.g., participating in financial counseling, taking care of past due accounts or items in collections).
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I want to apply for a loan, but I don't have a Business or Employment Plan; I also need funding for items other than equipment. What should I do?
We would be delighted to give you some help getting started on a business or employment plan and refer you to other resources should you need more assistance. We also will try to help you identify other funding sources to support your Telework employment.
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My income is very limited and I've never taken out a loan before? Can I still apply?
Absolutely. We look at each case individually. In some cases, we may ask for a guarantor. In other cases, we can offer extended payments and/or a smaller loan.
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How are the MELF's low interest loan programs funded?
The MELF's low interest loan programs were started by grants from the U.S. Department of Education. The program continues through funding from individual donors.
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What other services does the Michigan Employment Loan Fund offer?
We help callers identify other sources of funding and resources to help with money management issues. We provide some of these services directly. In other cases, we may refer you to another agency.
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