Microloans Filling the Credit Gap

As credit to small businesses from banks dwindles, increasing numbers of business owners are turning to microlenders. The New York Times says, "Even profitable small businesses that once relied on banks for financing are depending more on microlending, a resource that was originally intended to be a lifeline for women, low-income and minority entrepreneurs."

The Small Business Administration (SBA) is the largest U.S. microlender, but other government agencies and some philanthropies are helping small businesses weather the economic storm. If you've been wondering how the federal stimulus package might help your business, here is a possibility: The stimulus plan approved by Congress included $30 million for the SBA microloan program.

Suggestion: Do a web search for "microloan <your city>".

Tip of the hat to Business Opportunities Weblog.