At Denkyem, we’re committed to building trust and supporting community. We know applying for a loan is a big decision. We're here to keep things clear and straightforward. Below, you’ll find answers to common questions about our loan, eligibility, and application process.
If you don’t see your question here, reach out to us. We're here to support you every step of the way. Let’s build something great together!
Eligibility and Requirements
To qualify for a Denkyem Loan, businesses must be:Â
- Registered in Washington state Â
- Generating revenue Â
- On a path to profitability Â
- Involved in the communityÂ
The following documents must be provided complete and accurate:
- Copy of ID Â
- Business LicenseÂ
- Balance Sheet
- Profit and Loss StatementÂ
- Cash flow ProjectionsÂ
- Business Tax ReturnsÂ
- 3 Months of Bank StatementsÂ
Eligibility is based on your business’s cash flow and plan for profitability. Regardless of how long you've been in business, you must provide proof of cash flow through financial statements, contracts, or purchase orders. As a result, early-stage startups typically do not qualify unless they can demonstrate sufficient revenue to cover loan payments.Â
While we don’t have a specific minimum revenue requirement, your business must demonstrate sufficient cash flow to cover the loan repayment plus the 10% fee over the 36-month term. This can be shown through business financial statements, contracts, or purchase orders. The ability to make consistent payments is a key factor in loan approval.Â
Yes, non-profits can apply for the loan, provided they meet the eligibility criteria. Like for-profit businesses, non-profits must demonstrate consistent cash flow, financial responsibility, and the ability to repay the loan plus the 10% fee over the 36-month term. Additionally, non-profits should align with our focus on community involvement and capacity-building to be considered.Â
We assess community involvement by evaluating how many times the dollar can circulate within the community. This includes looking at a business's partnerships, programming, and contributions to the local community.Â
For growth potential, we focus on identifying areas where our capital injection can positively impact the business’s revenue. We look for specific opportunities within the business where funding will enhance operations, expand capacity, or unlock new revenue streams, ensuring sustainable growth.Â
We primarily lend based on your business’s cash flow, not personal credit. We perform a soft credit pull to check for any potential red flags, such as fraud. Ultimately, our focus is on your business revenue and ability to make consistent loan payments rather than your personal credit history.Â
No, we do not require traditional collateral. Instead, we believe in social collateral—the idea that repaying your loan helps us continue providing funding and support to other businesses in the community. Your commitment to repayment ensures we can expand our impact and strengthen the community together.Â
Application Process
The loan approval process begins once all required documents are submitted. After receiving a complete application, we typically make a decision within two weeks. Please note that incomplete applications cannot be processed, and missing documents will cause delays.Â
Yes, if your application is denied, you are welcome to reapply after six months. We encourage businesses to use this time to strengthen their cash flow, financial documentation, or growth plans. When you reapply, be sure to address any areas of concern from your initial application to improve your chances of approval.Â
To check the status of your loan, please log in to Loanwell. You may also reach out to the Business Service Manager you initially connected with during the loan process.
Please note:
- We are unable to process incomplete applications. Missing or inaccurate documentation may result in delays.
- Once all accurate paperwork is received, loan processing takes approximately two weeks.
Loan Terms and Usage
The Denkyem Loan is designed to provide capacity-building capital to help businesses grow, not as emergency funding. To qualify, your business must demonstrate consistent cash flow and the ability to repay the loan plus the 10% fee over the 36-month term. If your business is currently struggling to cover expenses, we recommend exploring other financial support.Â
Yes, there are some restrictions on how loan funds can be used. Borrowers work closely with our lending team to identify ways to leverage the loan effectively for business growth. Loan approval may be contingent on specific uses that align with growth and repayment goals. Loan funds must be used in compliance with federal law. Denkyem reserves the right to investigate if there are concerns about inappropriate use of the loan funds.
We do not charge interest. Instead, our loan is fee-based. A 10% fee is applied to the loan amount and spread evenly over the 36-month term. For example, if you borrow $10,000, the total fee will be $1,000, which will be divided into $27.78 per month over the 36-month term. Comparatively, this is equal to an interest rate of about 6.4%Â
No, this is not a grant. Our loan provides capacity-building capital that must be repaid over a 36-month term, along with a 10% fee. Unlike grants, this funding is structured as a loan to help businesses grow sustainably. Repayment allows us to continue supporting other businesses in the community.Â
Repayment and Support
Yes, you can repay the loan early. In fact, we reward early repayment by applying your payment directly to the principal and waiving any remaining fees. This gives you the flexibility to save on costs and repay on your terms.
We require a minimum payment of $100 per month. If you're unable to make a payment, it’s essential to stay in communication with our lending team. Keeping us informed allows us to work with you to adjust future payments and help you stay on track with the loan term schedule. Failure to communicate with the lending team for 90 days may result in further action. We are here to support your business’s success, and proactive communication ensures we can collaborate on solutions when challenges arise.Â
Yes, we provide access to a growing network of preferred technical assistance providers and are actively expanding our business support services for clients and the community. We maintain a high-touch relationship with each client, allowing us to respond to their unique needs.Â
Additionally, we hold space regularly at or community building events.
Have more questions?
Reach out to our team and we'd be happy to answer any questions you have.