Micro Loans are Helping Small Businesses to Start Up and Succeed
Micro Loans have been around for a while but they are now getting some attention, particularly with small businesses needing seed finance or early stage growth finance. In fact micro lending maybe what will help us get out of this recession. Micro loans create new businesses, which will need employees. Additionally these newly seeded businesses will hopefully encourage the larger banking institutions to lend more freely again. More reason for job growth. Small business growth + newly created jobs = a fix we need to exit this recession for good.
What is a Micro Loan?
A Micro loan is generally a loan to a start up or early growth small business for less than $35,000. Mostly controlled by non-profits, and they typically lend to businesses in a particular geographical area- generally a “local” or community based loan. Terms are for 5-6 years with collateral to securitize the loan typically. Micro lenders require a solid
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