Depending on whose stats you pay attention to, approximately 80% of small businesses fail within their first 5 years of operation. In many cases, its not that a particular business could not succeed; there just wasn’t sufficient time to figure out how to succeed.

Which brings us to the worst small business financing strategy ever.

Here’s how it works: Read the rest of this entry »

The Permanent Fund to Alleviate Extreme Poverty directly supports microloans from tax-deductible contributions. No overhead, no administrative fees, no fundraising costs are paid for with donated money to the Fund. Every gift to the Permanent Fund provides perpetual benefits. As loans are repaid, the money is loaned out in perpetuity.

MicroCredit Enterprises provides loans and guarantees to qualified MFIs. It launched its lending operations in 2006. It finds creditworthy, locally-run and locally-controlled microfinance programs around the world and provides these organizations with affordable, interest-bearing loans so that they can expand their operations. Priority is given to organizations that serve a high percentage of deeply-impoverished individuals and families, particularly women, and operate in isolated, rural communities.

Hunter Douglas Endowment for Microfinance Sustainability
MicroCredit Enterprises has established the HunterDouglas Endowment for Microfinance Sustainability, which is currently funded at $1 million. Operationally, this fund serves as a liquidity account or bridge financing to respond to unexpected financial emergencies in the MicroCredit Enterprises overseas loan portfolio.

See More of MicroCredit Enterprises here

Micro Lenders: A company or organization that offers small loans to businesses that are generally unable to obtain financing from a conventional source. Microlender loans often range from $5,000 to $25,000 at interest rates higher, but not always, than those charged by traditional commercial banks.

Micro loans first started in underdeveloped countries to help the poor become entrepreneurs. The loans were generally small. Today this has all changed. Micro loans are now available throughout the United States and one of their principle groups is women! Because women have had…

Finish: What Are Micro Loan Lenders? here

Being classified as a small business isn’t a bad thing. In fact, it means that you may qualify for a large amount of support from the Small Business Administration or “SBA”.

When you are in business for yourself, it is critical to develop a good knowledge base, and that is also what will help you wade through the myriad of small business loans.

So Let’s Look at How SBA Loans Work

The first thing you need to understand is that you as a business owner are not going to deal with the SBA yourself. The SBA does not act as a principle lender. Instead it backs loans made to small businesses that might otherwise not find a favorable market in traditional lending circles. This means that you will still seek financing from your regular source of lending: banks or other private financial institutions, and if they feel that you have merit but perhaps do not quite meet their more stringent requirements for a loan they put the loan forward to the SBA as a security backing. Read the rest of this entry »