Unbankable NV businesses targeted by new microlending program

The Rural NV Development Corp. is targeting a small sector of business in Reno and surrounding areas. The “microlending” service tries to get money to smaller businesses. The United States Department of Agriculture-funded program focuses on companies that could not otherwise qualify for loans. There is about $500,000 available for this loan program. $100,000 has already been awarded to businesses. This could help people stay away from pay day lenders if they can get the financing somewhere else. Source for this article – Reno microlending program targets unbankable businesses by MoneyBlogNewz.

Getting a rural development loan in Reno, NV

There could be a "microlending" program funded by the United States Department of Agriculture. It will include a $500,000 grant. There is the USDA Rural Microentrepreneur Assistance program. This will fund bad credit loans to all Reno-area businesses. These loans provide up to $50,000 for businesses that have been denied traditional banking loans. The loans are only for five years. Between 10 and 12 percent interest could be charged.

Qualifying for Reno bad credit business loans

In order to qualify for the Rural Nevada Development Corp. loans, a business has to meet several criteria. A business has to have less than $1 million in gross revenue per year and fewer than 10 employees. 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 include areas around Indian Reservations, LV, Carson City and Reno. Within the first five days of the program existing, $100,000 was handed out while $500,000 can go to Nevada total. Within the month, the whole $500,000 is anticipated to be gone.

Microfinance information

“Microfinance” and “microlending” are becoming popular terms. Though the United States Department of Agriculture is calling this Reno loan program “microlending,” it lends much larger amounts than most microfinance programs. Individuals with a very low income are targeted with microfinancing. Around $1,000 is typically paid for most "microlending" programs. The microlending for RNDC is huge when comparing these numbers. Most microlending from developed nations to creating countries is through private individuals, but there’s a “hole” in the credit sector for companies without good credit history and without money to develop their own companies.

Information from

RGJ

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