MicroLoans - Just the Right Size for Home Based Business Owners

Filed in archive Finance on April 6, 2010

© borman818


Having trouble getting a bank loan? Has your credit taken a beating over the last year? Just need a small amount to buy a new piece of equipment or fund your new website or to take on a part time person?

I don't know about you, but the thought of going to the bank, filling out the forms and then facing the criticism from a traditional loan officer about the lack of consistent income has kept me from even trying. And now the credit card companies are hitting you with higher minimum balance payments and sky high interest rates. So I was excited to read an article about micro loans.

They are designed for the small business owner that only needs $500 to $35,000 and the credit requirements are not as strict as bank loans.

The loans are intended for entrepreneurs who would not qualify for a bank loan, so you don't need perfect credit to make a successful application - micro lenders have more flexible underwriting criteria and are willing to take more risk than most banks....and they welcome minority and women applicants.

Micro loans are non profit lenders and you can find a local lender by visiting Microenterpriseworks.org

For an overview on micro loans - visit the Small Business Administration site and the micro loan web page.