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

---

Mobile Car Washes and Shoe Policies

Mobile carwashing is hard work, it is tough on the... Read More

Round Pegs In Round Holes: The Amazing Secret of Succeeding in Any Business Every Time!

Success is the desire of everyman on the face of... Read More

Financial Strategies for a Mobile Car Wash Business Plan

Writing a business plan for a mobile car wash is... Read More

Starting a Pressure Washing Business

Are you thinking of starting a small pressure washer business... Read More

Effective Customer Interviews Make Life Much Easier!

One of the critical success factors for service-related businesses is... Read More

California Department of Corporations Attempts to PR Their Benefits to Consumers

On Monday the Department of Corporations in California revoked franchise... Read More

Setting Prices - Pricing Your Consulting Services

THE PSYCHOLOGY OF PRICINGIn case you hadn't noticed, people can... Read More

Batting Cages Business - Making Profits With The Swing Of A Bat

There is a Batting Cages Business for those people who... Read More

Employee Monitoring - Business Risks For Employers And How To Avoid Them

E-mail and Internet use are integral parts of the typical... Read More

A Portable Trade Show Exhibit Makes for an Easier Show

You can make your trade show experience much easier by... Read More

Small Business - Is The Accounting Profession Ripping Them Off?

My 16 year-old daughter said, "Gee Dad! You look just... Read More

The Beauty of Focus and Plan B

Did you ever have one of those days or weeks... Read More

10 Best Practices to Consider as Your SBIR Negotations Approach Contract Signature

10 Best Practices to consider as your SBIR negotiations approach... Read More

How to Successfully Avoid Becoming One of The 80% of Small Businesses That Will FAIL

It's a commonly quoted statistic: 80% of all small businesses... Read More

13 Steps to Protect Yourself from Your Bank

The success of your business is critically dependent on how... Read More

Motorcycle Detailing Procedures Manual Sample Outline

If you are a motorcycle detailer and need to expand... Read More

Entrepreneurs Go Virtual!

With the massive explosion of start-ups and home businesses developing,... Read More

Small Business Support Equals Survival

Support is critical for your small business survival. You may... Read More

How Mastering 5 Essential Money Making Ideas Can Lead Your Business to Longterm Cashflow

Essentially there are 5 tremendously powerful methods to make money... Read More

Dynamics of Daylight Savings Time on Service Businesses in the United States

The Dynamics of Daylight Savings Time changes the way we... Read More

The Key to a Successful Business

Where would a business be without a business plan? A... Read More

Increase Productivity and Business Success - Take Responsibility

Are you responsible for your results?What comes to mind when... Read More

Starting is the Hardest Part

You can't imagine how many people ask me how I... Read More

Two Types Of Business Plan Cover Pages ? Which One Are You Using?

This is the tale of two business plans with very... Read More

Tell Me The Reasons Why I Should Believe You?

Have you ever heard the phrase, 'PREPONDERANCE OF PROOF'?I recently... Read More

Essex Accountants: Top Things to Look For

One of the most common horrific mistakes a business can... Read More

Truck Detailing Shop Business Case Study

As an entrepreneur you can learn a lot by following... Read More

Top 7 Small Business Tax Tips

Here are seven ways for owners of small businesses to... Read More

Serious About Writing A Business Plan... Start A Business Plan Library

Tap these treasures of ideas. The best money you can... Read More

The Perilous Franchise Agreement: What Did You Sign?

Purchasing a franchise has become one of the most popular... Read More

How to be Annoyed and Make Money

When do annoyances in a relationship become too much to... Read More

Small Business - A Thing Worth Doing Is Worth Doing Badly

A thing worth doing is worth doing badly. Yes I... Read More

Multiple Clients Create Your Independent Business

Would you rather have one good client paying you five... Read More