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Thread: Micro loans for economic development

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    Super Moderator luckless pedestrian's avatar
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    Micro loans for economic development

    Do you run the micro loan program for your community? How's it going? What is the make up of the reviewing committee?

    Thanks!

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    moderator in moderation Suburb Repairman's avatar
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    I don't know any that are municipal-run... most are run through a Community Development Financial Institution (CDFI) nonprofit. In my region, the highest functioning one of these is PeopleFund. It may not be true micro loans like you are thinking about though, as they'll do almost any size. But their programs & tools are pretty much a book of best practices.

    "Oh, that is all well and good, but, voice or no voice, the people can always be brought to the bidding of the leaders. That is easy. All you have to do is tell them they are being attacked and denounce the pacifists for lack of patriotism and exposing the country to danger. It works the same way in any country."

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    Forums Administrator & Gallery Moderator NHPlanner's avatar
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    Only the larger cities in NH have the budget to do any kind of "lending." Otherwise, it is regional economic development entities (such as redc.com) that do lending for econ dev projects in NH.
    "Growth is inevitable and desirable, but destruction of community character is not. The question is not whether your part of the world is going to change. The question is how." -- Edward T. McMahon, The Conservation Fund

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    Cyburbian Mud Princess's avatar
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    I don't run a program, but I'm aware of micro loan programs operated by counties (technically, by a county industrial development agency or local development corporation). The loan committees are usually made up of county economic development staff plus professionals with small business or commercial lending experience.

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    Cyburbian Brocktoon's avatar
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    I sit on a board of a CDE that does loans between $5k-$50k. The CDE is also a CDFI so it has multiple loan pools from local banks and an CDBG tranche from a community.

    Loan review committee is a few board members and some local bankers. (The board members are also bankers so its entirely comprised of bankers.)
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    Cyburbian WSU MUP Student's avatar
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    Quote Originally posted by Mud Princess View post
    I don't run a program, but I'm aware of micro loan programs operated by counties (technically, by a county industrial development agency or local development corporation). The loan committees are usually made up of county economic development staff plus professionals with small business or commercial lending experience.
    This is what we have in our county. I don't work in that area of our office but from what I understand our micro-loan program is run through our office's Business Finance Committee and Economic Development Corporation (which are legally separate entities) in conjunction with a non-profit agency and our loan committee is made up of the same people who are on our SBA 504 loan committee.
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    Cyburbian Cardinal's avatar
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    It has been many years, but I developed and administered one. What we tended to see were downtown retail startups or food business startups. The committee was made up of three board members, one of whom actually had some business financial experience.
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    Cyburbian zman's avatar
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    Im on the loan committee for the local council of governments, and I am the only municipally-employed member. The rest seem to be bankers and commercial lenders, etc.

    We offer small reimbursable grants to the local business community, but lack the staff training or capacity to run a full-tilt loan program.
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