A new $350,000 microloan fund has been established in Boston for small businesses located within the city’s 5.8-square-mile "Empowerment Zone" (EZ), Boston Mayor Thomas M Menino announced today.

The EZ is an area consisting of roughly 60,000 residents, stretching north to south from Dorchester to parts of Downtown.

The fund is designed to support eligible entrepreneurs and existing small business with access of up to $25,000 in loans for working capital needs, such as inventory and leasehold improvements, according to Menino’s statement. 

"Part of our strategy for strengthening our local communities is to ensure a strong and expanding base of small businesses that provide jobs to local residents," said Menino. "This microloan pool is designed to strengthen those businesses that already support our neighborhoods, and encourage the creation of new ones. We know that public-private partnerships promote investment necessary for sustainable economic and community development."

EZ businesses with annual revenues less than $500,000 are eligible to apply for financing through the program. Loans will vary from $5,000 to $25,000 and will carry a fixed rate of 9 percent.

The fund, known as "Microloan Boston," is a partnership between the Department of Neighborhood Development’s Office of Business Development (OBD) and Boston Connects Inc., a non-profit organization that administers the EZ.