Nonprofits Offer Loans to Very Small Businesses

The groups say the loans, which can be as small as $500, are aimed at helping existing or startup businesses that cannot obtain regular commercial credit due to their size.

Source: Inside INdiana Business

Indianapolis Microloan Fund Press Release

Three local nonprofit organizations have partnered to create the Indianapolis Microloan Fund to help very small Indianapolis businesses grow and prosper.

The Neighborhood Self-Employment Initiative, Community Choice Federal Credit Union and the Local Initiatives Support Corporation created the fund that will offer loans of $500 to $10,000 to very small businesses, frequently called microenterprises, in Marion County.

The Indianapolis Microloan Fund is targeting very small business owners unable to obtain regular commercial credit due to their small size and/or lack of a proven track record. Many microenterprises are one-person businesses, but they may have as many as five employees.

“We know that in very small businesses, a few thousand dollars can make the difference between success or failure,” noted Charles Sim, executive director of the Neighborhood Self-Employment Initiative. “We hope the microloans will help some very small businesses grow and generate the income to support the owner and possibly several employees.”

Both existing businesses as well as startups may be eligible for the loans. The business may be a part-time or full-time venture for the owner.

To be eligible for a loan, the small business must:

exist at the time of loan application
be located in Marion County
be current on all federal, state and local taxes
use the loan proceeds only for the approved business purposes

In addition, loan applicants need to be:

· at least 21 years old

both the owner and operator in the day-to-day business operation

The Community Choice Federal Credit Union, Local Initiatives Support Corporation (LISC) and the Indiana Microenterprise Partnership Program will provide funding for the loan program.

“We hope that individuals who are starting or operating a very small business and who are not in the economic mainstream will apply for a loan,” said Barbara Black, chief executive officer of the Community Choice Federal Credit Union. “This includes the working poor, immigrants, women, minorities, under- and unemployed and the disabled, as well as individuals operating businesses in the informal economy.”

“Helping very small businesses grow will benefit our neighborhoods, generate income, and create jobs,” said Will Pritchard, senior program officer at LISC.

Individuals interested in applying for a microloan should contact the Neighborhood Self-Employment Initiative at 317-917-3266 or email information@nsibiz.org.

About the Organizations:

The Neighborhood Self-Employment Initiative (NSI) helps people create and develop their own microenterprise through training, workshops, one-on-one counseling and mentoring programs.

Founded in 1981, Community Choice Federal Credit Union (CCFCU) is a community-owned and controlled financial institution with a primary mission of serving low-income and under-served residents of Indianapolis’ near eastside.

Local Initiatives Support Corporation (LISC) helps resident-led, community-based development organizations transform distressed communities and neighborhoods into healthy ones— good places to live, do business, work and raise families.

Source: Community Choice Federal Credit Union