Unbankable NV businesses targeted by new microlending program

The Rural Nevada Development Corp. is kicking off a new "microlending" program. The U.S. Department of Agriculture-funded program focuses on companies that couldn't otherwise qualify for loans. There is about $500,000 available for this loan program. $100,000 has already been awarded to companies. This could help people stay away from payday lenders if they can get the financing somewhere else.

When in Reno, Nevada, you might want a rural development loan

A new "microlending" program will begin due to a $500,000 grant that the U.S. Department of Agriculture is funding. The program funds bad credit loans for Reno and Reno-area companies through the USDA Rural Microentrepreneur Assistance program. The loans are being given to companies that weren't able to get traditional loans from banks. Up to $50,000 per business will be given. Between 10 and 12 percent interest will be charged on the loans that have only five years to pay them back.

Ways to qualify for bad credit business loans in Reno

There are criteria that have to be met for a Rural Nevada Development Corp. loan to be offered. Less than 10 employees in the business are allowed while less than $1 million a year in gross revenue is allowed. Traditional loan financing has to have been applied for by the business that got denied. There are only a few areas that can get the money. These consist of areas around Indian Reservations, LV, Carson City and Reno. In NV, only $500,000 total is being offered for these programs. In the first five days of the program, $100,000 was already handed out. It is anticipated the $500,000 will not last long. It will take a month at the longest to distribute it all.

What you should learn about microfinance

Many know the terms "microfinance" and "microlending" now. They’re more popular than ever. Though the United States Department of Agriculture is calling this Reno loan program “microlending,” it lends much larger amounts than most microfinance programs. Usually microfinancing is for those who do not make very much money. They have very low income. Around $1,000 is typically paid for most "microlending" programs. The microlending for RNDC is huge when comparing these numbers. Typically the microlending is for creating countries and comes from a private individual in a developed country. Still, the "hole" in the market that has companies unable to afford to expand but additionally without a good credit is hard to figure out.

Citations

RGJ

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