Go to content Go to navigation Go to search

March 31, 2009

Credit Crunch Attracting Clients to Nonprofit Microlenders

With banks continuing to keep a tight rein on credit, American small businesses and would-be entrepreneurs are increasingly turning to nonprofit lenders for financing, reports The Wall Street Journal.

Typically nonprofit lenders have focused on making small grants to entrepreneurs from impoverished neighborhoods in the United States and elsewhere, offering small capital injections at higher interest than banks but with more lenient screening and greater flexibility in repayment.

Kathy Ricci, executive director of the Utah Microenterprise Loan Fund, said the organization doubled its loan volume last year to $1.2-million. “We are seeing more people that perhaps a year ago could have gotten a bank loan,” she said.

(A paid subscription is required to view this article.)

Tuesday March 31, 2009 | Permalink

Commenting is closed for this article.

Previous: British Charities Press for 'World Social Bank'
Next: Obama Urges Sudan to Allow Aid Groups' Return

---

Copyright © 2009 The Chronicle of Philanthropy