Mirco Loans For Small Business

Funding a small business venture can be quite an obstacle especially for those who have poor credit ranking as well as those come from socially and economically poor backgrounds and communities. However, there are movements made to ensure that such people, despite their poor credit reports and their social and economic stratus, will have access to funds that can be used to fuel their business ventures. A number of private organizations and financing firms now offer micro loans for small business owners. Microlending is fast becoming a popular small business financing option for people who come from poor backgrounds and bad credit history yet who are deserving of financial assistance. In the United States, micro lending has taken a foothold and more Americans who want to become small business owners and entrepreneurs are now finding small solace in micro loans for small business. Among the popular microloans provider in the US is Kiva. Primarily catering to third world countries, Kiva has entered the US small business scene and offered micro financing solutions to American entrepreneurs who have a hard time obtaining funds through traditional approaches such as small business loans. Kiva is now working with American lending firms that provide microloans to their clients such as Opportunity Fund. Aside from Kiva, Accion USA has also answered the high demands to provide micro loans for small business owners and entrepreneurs. Accion USA’s network of partners include HSBC, Chase, and Citibank to name a few. Accion USA features an easy application process online, enabling borrowers to just send their loan request through the Internet. Qualified borrowers are then contacted for further instructions and requirements. The Small Business Administration (SBA) has also launched its micro financing solutions and packages in partnership with small business lenders throughout the United States. The SBA Micro Loan Programs grants eligible business owners with up to $50,000 worth of loans. The average plays around $13,000. The SBA has made it clear that proceeds from the loan should be used for the following: Working capital Business-related purchases such as supplies, inventory, office furniture, supplies, commercial machinery and equipment Unlike conventional business loans that look on credit score and collateral as factors for approval, micro lenders tend to measure passion and commitment of the borrower instead. That said, most, if not all, micro loan applicants are required to undergo money management training and business handling skills workshop to ensure that they channel the funds to its intended designation and use.