Microloans
Microloans are essential for a strong world economy. There are over 2,000,000 microenterprises in US alone, and hundreds of millions more in other parts of the world.
It is hard to believe that microloans have received so little attention in the world's economic summits. Gradually that is changing, thanks in large part to Dr. Mohammed
Yunnus.
The Grammeen Bank (Bank of the Poor)
Dr. Mohammad Yunnus developed the Grameen Bank (Bank of the
Poor) in the country of Bangladesh in 1976.
The bank was established the with the practice of making small loans to
the poor – predominantly women --to help them obtain economic
self-sufficiency.
It's success rate is
unparalleled in the world of banking. Over 99% of its loans are repaid on time. That's a record that any bank would envy.
Gradually other areas of the world are embarking on microloan programs as well.
Count Me In
Count Me In is one of the organizations that grants microloans for business purposes.
Lenders for Community Development
Lenders for Community Development focuses on small businesses in Northern California, specifically Santa Clara, San Francisco and San Mateo.
It grants loans in the $1,000 to $100,000. While $100,000 doesn't sound like a microloan, in Northern California it is a small enough amount that most banks don't want to hassle with it. So Lenders for Community Development have stepped in.
SBA
Microloan Program
The SBA Microloan Program is an on-again off-again program. It should stay ON. This is a hugely worthwhile program that accepts all sorts of alternative collateral for small loans.
Nevada Microenterprise Intitiative
Nevada is one of the few states that has formed an organization to address the lack of microloans. It's Microenterprise Initiative is a boon for small businesses there.
Utah Microenterprise Loan Fund
In Utah a microloan program has been established to earmark $1,000 to $25,000 for small business, whether or not the
business owner is the primary income generator for the family. This opens up the fund to many work at home parents.
The Utah microloan program provides workshops too. Potential borrowers are encouraged to attend an orientation meeting
Accion
USA
ACCION USA makes microloans to people who need them.
It is part of the U.S. ACCION Network, which has loaned over $154 million
to more than 16,000 entrepreneurs since 1991. These loans range from $500 to
$25,000 and serve as a vital resource for small businesses and
entrepreneurs throughout the United States who may not have access to
traditional bank credit.
Accion USA helps small businesses get started and keep growing with timely
business loans.
Accion USA is based in Boston, but does nationwide lending.
- Loans ranging from $500 to $25,000 for most business needs
- For a new business (i.e. less than one year of operations), the
maximum loan amount is $10,000. A business plan and one year of cash
flow projections are required.
- Competitive interest rates
- 1 - 60 month terms
- Easy application process
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