Home
>
Small Business
>
How to Find a Microenterprise Loan for Your Business

How to Find a Microenterprise Loan for Your Business

If you're looking for start-up capital for your business, but you don't have the credit, collateral or background needed by your bank to get a business loan, then microenterprise might be your best bet.

Microenterprise Development programs have been around since the 1970s. They were created as a way of helping people who couldn't access traditional methods of credit, either because they were too poor, or the amount of money they needed was too small for a bank to be interested.

In the United States, there are over 500 Microenterprise programs designed to help low to moderate income entrepreneurs. In fact, if you have bad credit, no credit and no collateral, you can probably find a microenterprise loan fund in your state, city or town.

What do microenterprise loan programs do?

They provide a variety of financial and business services to entrepreneurs. Some programs provide free or low-cost business classes that will walk you through the process of writing a business plan. Other provide counseling, to help you manage your debt, and understand and use financial planning software. Still others offer business mentors. Most Microenterprise loans have some type of networking program, where you can build relationships with other business people.

How much money can you borrow?

Loan amounts vary from $500 to $25,000. Interest rates are at or below prime, and you don't need to have a lot of collateral or excellent credit in order to apply. In some programs, you can qualify for a smaller loan fairly easily, and then, once it has been repaid, apply for a larger loan. This helps to build your business credit, and insures that you don't over-extend yourself.

What is a microbusiness?

A microbusiness is defined as any business:

that can be started for less than $35,000 has five or less employees has a revenue of less than $100,000 a year What types of businesses qualify for a microenterprise loan?

Traditional businesses such as:

*small specialty shops like hobby shops, florists and gift shops

*small engine or auto repair shops

*bakeries, cafes and sandwich shops

*beauty parlors and barber shops

*arts and craft stores, ceramic shops and art galleries

Non-traditional businesses such as:

*massage therapists, acupuncturists, hypno-therapists

*business, life and relationship coaches

*soap and essential oil manufacturers

*artists, painters and jewelry makers

*doggie daycare owners, mobile beauty shops and in-home computer repair

Where can you find a program in your area?

One of the biggest problems with finding a microenterprise loan program is that they are often not very well advertised, and may not even be called a "microenterprise development program" so unless you know where to look it can be frustrating. Here are some ideas to get you started:

*The Small Business Adminisration

*Your local Chamber of Commerce or Economic Development Agency

*Small Business Development Center in your area

*Your bank or credit union

*Women's organizations, business support groups

*http://www.microenterprisesuccess.com -- you can find free microenterprise resources indexed by state here

The main thing to remember is that if you're really serious about starting your own business, there are resources available to help you, so don't give up!

Cheryl Antier is the President of Dream Weaver Enterprises, a business and fundraising consulting company. MAPS (Microenterprise Answers to your Personal Success)is a membership organization that helps women to start, grow and succeed in small business ownership. Find free resources indexed by state, learn about grants and small business programs by signing up for our free newsletter at http://www.microenterprisesuccess.com

limousine Ackley .. Lockport Chicago limo O’Hare

In The News:

A virtual private network can help ensure your information remains security and your privacy remains intact. Kurt the CyberGuy explains.

Stay up to date on the latest AI technology advancements and learn about the challenges and opportunities AI presents now and for the future.

Artificial intelligence-based cameras are giving air defense operators unprecedented capabilities in monitoring and protecting airspace.

Apple's iOS 18.1 Inactivity Reboot automatically reboots your iPhone if it hasn't been used or unlocked for more than three days, providing better data protection.

An inventor designed rooftop solar panels for a Tesla that draws solar energy while the car is parked, adding travel mileage without plugging in.

There are currently no laws governing what artificial intelligence can and cannot do with the information it gathers; here are 10 things to avoid telling AI chatbots to keep yourself safe.

A credit union with over 240,000 members recently revealed it was targeted by cybercriminals, resulting in a data breach that was part of a two-month attack by hackers.

Scammers have become skilled at creating convincing fake websites that can easily fool unsuspecting users. The CyberGuy offers tips to protect yourself.

Stay up to date on the latest AI technology advancements and learn about the challenges and opportunities AI presents now and for the future.

CAPTCHAs, which are used by websites to confirm whether users are people or bots, are harmless, but hackers are using them to infect PCs with malware.

Hackers recently leaked personal information of about 500,000 Americans and stole patient medical records that included lab results and insurance details.

The holiday season sees a rise in mobile shopping scams. Tech expert Kurt “CyberGuy" Knutsson helps you learn how to stay safe.

Tech expert Kurt “CyberGuy" Knutsson says a VPN enhances online banking security by encrypting data and protecting privacy.

Beware of these six sneaky holiday scams. Tech expert Kurt “CyberGuy" Knutsson gives you tips to avoid falling victim.

Tech expert Kurt “CyberGuy" Knutsson reveals how to securely back up and factory reset your Android to protect your privacy and data.

Artificial intelligence is making life easier for cybercriminals, allowing them to create elaborate scams to trick people. Kurt the Cyberguy explains how to protect yourself.

Cut through all the digital clutter and delete multiple emails from your Android simultaneously. Kurt the CyberGuy explains how it's done.

Tips to prevent your holiday decorations from being stolen

Stay up to date on the latest AI technology advancements and learn about the challenges and opportunities AI presents now and for the future.

Kurt "CyberGuy" Knutsson lays out the immediate steps you should take if your phone has been hacked and your personal information becomes vulnerable.

Fraudsters are sending people bogus invoices through PayPal as part of a sneaky scam that is going around; here's how to protect yourself from being fooled.

A former Colgate-Palmolive employee was shocked to discover $750,000 had been drained from her 401(k) account. "CyberGuy" offers tips on how to prevent identity theft.

Electric vehicle maker Harbinger recently showed its electric delivery truck can handle icy roads with agility and stability in winter.

To make the busiest time of year more manageable, here are some tricks for tracking your packages, taking quality family photos and curating the perfect Christmas playlist.

Kurt "CyberGuy" Knutsson explains how to keep your online Amazon gift purchases a secret from loved ones or friends this holiday season.