Microlending: An idea for Boone County or Growth Dimensions?
In July the County Board Finance and Audit Committee agreed to set aside $200,000 of the county's Revolving Loan fund for small loans of from $5,000 to $25,000 to local businesses. It's the only program of its kind left in the region.
the program requires not only collateral for each loan but also a personal loan guarantee.
a business plan with plausible estimates of income, expenses and cash flow. "We do the same thing that we'd do for a bank loan," Final judgment rests with the Finance and Audit Committee. So far only two applications have made it there for review. Both were rejected.
ACCION Chicago is an alternative lending organization dedicated to providing credit and other business services to small business owners who do not have access to traditional sources of financing. This has been apparently quite successful. See its website at: http://www.accionchicago.org/
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