Micro Loan Funding For US Small Business
While the concept of using micro loans to spur small business development gained fame for its success in developing nations, the same idea is now being applied in the US to help small business owners with limited credit history. Nonprofit micro-lending organizations have been offering presentations to groups of entrepreneurs in cities like San Francisco, many of whom have been denied funding from more traditional sources.
These organizations help to disperse money from the Federal Recovery and Reinvestment Act, and act as intermediaries between the Small Business Association and family-owned business. The micro loans range in size from between $500 to $100,000, and feature fixed interest rates with little or no collateral necessary. Even established and successful small businesses have been struggling to get loans from banks in the current economic environment.