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How to Find a Microenterprise Loan for Your Business

If you're looking for start-up capital forhas  five  or  less  employees
your business, but you don't have the credit,
collateral or background needed by your bankhas  a  revenue of less than $100,000 a year
to get a business loan, then microenterprise
might be your best bet.MicroenterpriseWhat types of businesses qualify for a
Development programs have been around sincemicroenterprise loan?Traditional businesses
the 1970s. They were created as a way ofsuch as:*small specialty shops like hobby
helping people who couldn't accessshops, florists and gift shops*small engine
traditional methods of credit, either becauseor auto repair shops*bakeries, cafes and
they were too poor, or the amount of moneysandwich shops*beauty parlors and barber
they needed was too small for a bank to beshops*arts and craft stores, ceramic shops
interested.In the United States, there areand art galleriesNon-traditional businesses
over 500 Microenterprise programs designed tosuch as:*massage therapists, acupuncturists,
help low to moderate income entrepreneurs. Inhypno-therapists*business, life and
fact, if you have bad credit, no credit andrelationship coaches*soap and essential oil
no collateral, you can probably find amanufacturers*artists, painters and jewelry
microenterprise loan fund in your state, citymakers*doggie daycare owners, mobile beauty
or town.What do microenterprise loan programsshops and in-home computer repairWhere can
do?They provide a variety of financial andyou find a program in your area?One of the
business services to entrepreneurs. Somebiggest problems with finding a
programs provide free or low-cost businessmicroenterprise loan program is that they are
classes that will walk you through theoften not very well advertised, and may not
process of writing a business plan. Othereven be called a "microenterprise development
provide counseling, to help you manage yourprogram" so unless you know where to look it
debt, and understand and use financialcan be frustrating. Here are some ideas to
planning software. Still others offerget you started:*The Small Business
business mentors. Most Microenterprise loansAdminisration*Your local Chamber of Commerce
have some type of networking program, whereor Economic Development Agency*Small Business
you can build relationships with otherDevelopment Center in your area*Your bank or
business people.How much money can youcredit union*Women's organizations, business
borrow?Loan amounts vary from $500 tosupport groups* -- you can find free
$25,000. Interest rates are at or belowmicroenterprise resources indexed by state
prime, and you don't need to have a lot ofhereThe main thing to remember is that if
collateral or excellent credit in order toyou're really serious about starting your own
apply. In some programs, you can qualify forbusiness, there are resources available to
a smaller loan fairly easily, and then, oncehelp you, so don't give up!Cheryl Antier is
it has been repaid, apply for a larger loan.the President of Dream Weaver Enterprises, a
This helps to build your business credit, andbusiness and fundraising consulting company.
insures that you don't over-extendMAPS (Microenterprise Answers to your
yourself.What is a microbusiness?APersonal Success)is a membership organization
microbusiness is defined as any business:thatthat helps women to start, grow and succeed
can  be  started  for  less  than  $35,000in small business ownership.



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