We often hear about the benefits of a microloan overseas, but how do they help American entrepreneurs? Entrepreneur has the story of one woman who found the funding she needed thanks to Accion.
What was the application process like?
I applied online in late April. That first step was a very nonthreatening one.
One of Accion’s loan officers got back to me, and we did a lot of talking by phone. The process was actually not easy. They want you to work for it. I had to put together my loan package, including my business plan, and they requested 100 percent collateral. My father, who’s elderly and lives with me, had paid off the home we all grew up in, so I ended up using that as collateral.
What tips can you offer others seeking a microloan?
Talking with other local businesspeople and doing your homework and being very realistic about your expectations is key. You also need to make sure you’re aware of your own credit, so get your credit report. It’s true what everyone says about how important a business plan is. It helped me build a foundation for everything else that I put together.