It seems that traditional commercial bank loans are now challenging for many small businesses.  SBA has increased their guarantee so one would think it would be easier for the banks to be able to lend.  However, like any lending institution, they need to underwrite the loans with the highest degree of scrutiny.  And if you are a start up, you have the option of family and friends or you can turn to microlenders for financial support.

Sandbox Gahanna, a coworking facility who offers small business owners and entrepreneurs a collective and affordable place to work, has recently partnered with the Economic and Community Development Institute (ECDI) to offer small businesses in our community access to funding through microloans.  ECDI is a non profit organization that is committed to provide community resources to Central Ohio entrepreneurs. 

In 1992, the microloan program developed by the Small Business Administration (SBA) and was primarily geared toward start-ups and newly established small businesses. The microlenders in the program were nonprofit community-based intermediaries funded by the SBA.  Loans were lent to business owners with spotty credit or limited experience, and also provided resources and business counseling as a condition of the loan. These loans can be less than $100 and can go up to a maximum of $35,000. The average loan size is $10,000 with the maximum loan term being five years.

Today’s environment is much different.  With the credit market frozen we are seeing established businesses with high credit scores also approaching microlenders.

Finally there is an easier solution for small businesses to obtain funding so they can pursue and achieve their dream.  Every small business owner needs the opportunity to grow and build their vision.  Sandbox Gahanna is dedicated to help you achieve that dream in our community.

For more information contact Becky (work@sandboxgahanna.com) at Sandbox Gahanna.