According to AllBusiness.com, while microcredit loans first originated in the Third World as a way to help launch small businesses thousands of American entrepreneurs are finding it as the alternative solution to traditional lending.
Many of the micro lenders, which are mostly non profits, receive the bulk of its funds from the Small Business Administration.
In order for these micro lenders (intermediaries) to loan money to micro borrowers there are specific funding and training guidelines set by the SBA.
One of the reasons why this funding option has become so attractive to entrepreneurs is because it’s less difficult and time intensive to qualify for this small loan which ranges from $500 to as high as $35k compared to the traditional lending route.
Continue Reading: “Microfinance Loans May Be The Solution”
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