Small New Jersey Business? Consider Microloans.

If you have a small business in New Jersey (or anywhere) you’ll want to listen to this podcast about microloans at the Small Business Administration (SBA). Microloans are easier to qualify and get approved for – and often times, are all a small business needs to get the jumpstart they need.

This podcasts consists of an interview of Grady Hedgspeth, the director of SBA’s Office of Financial Assistance, by Ron Johnson of the SBA.

Some highlights of the podcast:

Ron Johnson: Tell us about SBA’s Microloan Program. How is this program different from any other small business loan?

Grady Hedgespeth: Well, most SBA loans are made through the 7(a) Loan Guarantee Program, where a bank makes the loan and SBA guarantees a percentage of that loan. Microloan Program is different. SBA actually makes a loan to an intermediary. Now, this is a nonprofit located in the community and that intermediary, in turn, makes a loan to a small business owner.

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Ron Johnson: And what criteria must a small business owner meet to qualify for a microloan?

Grady Hedgespeth: Well, first of all, it’s actually a very small loan so it’s, in some respects, ideal for startup businesses. The loan cannot be more than $35,000 and actually, the average microloan in the portfolio is only about $13,000. Generally, the borrower who would be qualified for a microloan would be someone who is not traditionally bankable. That maybe because they don’t have enough collateral to support a loan or they don’t have an established track record for their business or they might have a low credit score or no credit score at all because they’d never had credit.

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A Small Loan Can Make a Big Difference: SBA’s Microloan Program:

Grady outlines the SBA’s microloan program, explains the criteria to
qualify and steps you should take before applying for a microloan.

( Transcript)

Have you had a microloan from the SBA?