Frequently Asked
Questions

BrightStreet is a nonprofit that provides loans, grants, services and technical assistance  to new and expanding small business owners who face barriers to traditional financing—such as limited credit history, lower credit scores, or lack of collateral. BrightStreet focuses on businesses that help strengthen local economies and create jobs in their communities.

Unlike many traditional lenders, BrightStreet evaluates the full story of the business, not just a credit score. Our program provides loans but also incorporates a grant opportunity.  We also combine our capital support with technical assistance and business support services, as well as connections to professional networks.

Yes. BrightStreet, directly and in partnership with other organizations, provides training, counseling, and mentorship as well as technical assistance and business support services to help entrepreneurs strengthen their businesses and increase their chances of success.

Applicant Minimum Eligibility Requirements

The following criteria that must be met to be considered for a Loan:

• Program Participant is at least 18 years of age and is a permanent legal resident of the U.S.
• Business is registered in the appropriate jurisdictions and is in good standing.
• Business is located within low to moderate income communities served by BrightStreet.
• Program Participant has not filed bankruptcy in the last 5 years.
• Program Participant is not past due on child support payments, alimony or otherwise subject to wage garnishment.
• Program Participant is current on all tax obligations or has a work-out repayment plan approved by the relevant taxing authority, and if a corporate entity, is also in good standing in its jurisdiction of organization.
• Program Participant enrolls and completes (before or within the first year of the program) one of the business services and technical assistance programs approved by BrightStreet.

Additionally, BrightStreet does not deal with businesses in tobacco, alcohol or marijuana trades and does not typically engage in technology startup businesses.

Yes, we review more than just your credit score and history. The other factors we consider include:

• Projected revenues and cash flow
• Debt levels
• Industry and business experience
• Strength of your business plan
• Explanation for past credit challenges

No, although a personal guarantee is required for the business loan.

Yes, particularly if the business has been operating for several months and generating revenue. In early stage cases, a strong business plan with credible financial projections is critical.

Entrepreneurs can access loans ranging from $1,000 to $50,000 to start, strengthen, or expand commercial ventures

Key features include:

• Prime-rate interest (locked in at inception of the loan)
• 3-year loan term
• Monthly repayment

These loans are designed to be both affordable and flexible, enabling businesses to invest in equipment, inventory, marketing, licensing, or other growth needs.

Business loans may typically be used for:

• Working capital
• Purchasing equipment or inventory
• Hiring employees
• Marketing and expansion
• Leasehold improvements
• Business acquisition or refinancing

The BrightStreet Grant is money you can earn after completing the Program. You can receive up to 50% of your original Loan amount as a Grant that helps you save for retirement. Unlike a Loan, you do not repay the Grant if you meet all requirements.

Any Program Participant who successfully completes the Program may receive a Grant.

You must repay your Loan in full, complete required business training unless waived, attend at least 75% of quarterly meetings, and submit all required information in your Loan agreement.

Participants in BrightStreet’s Program are grouped into Communities of about 10–15 people. Each participant has their own Loan, but Grant amounts depend on overall Community performance.

BrightStreet sets aside an amount equal to 50% of all loans in a Community. Each participant’s share of the pool is based on their loan size, up to 50% of their Loan.

Yes. If participants default on Loans or fail to complete the Program, their share is removed and the total Grant Pool is reduced by the remaining unpaid amount of their loan.

No. You are never responsible for another participant’s Loan. Defaults only affect the size of the Grant Pool.

Grants are paid within 90 days after the last Community member finishes repaying their Loan, usually 3–4 years after loans begin.

Funds are deposited into your retirement account up to legal limits, with any excess deposited into a regular savings account.

The maximum grant is 50% of your original Loan amount. The final amount may be lower depending on Community performance.

This structure rewards repayment and completion, encourages shared success, and supports long-term retirement savings.