Unbankable NV companies targeted by new microlending program

A new program targeting small businesses in NV has started. The Rural NV Development Corp. is administering the program. The United States Department of Agriculture-funded program targets businesses that couldn't otherwise qualify for loans. One-fifth of the money has already been handed out. This could help people stay away from payday lenders if they can get the financing elsewhere.

Getting a rural development loan in Reno, NV

A new "microlending" program will begin because of a $500,000 grant that the United States DOA is funding. Bad credit loans for Reno and Reno-area companies could be funded due to the USDA Rural Microentrepreneur Assistance Program being started. The loans are being given to companies that were not able to get traditional loans from banks. Up to $50,000 per business will be given. The fixed-rate loans charge between 10 and 12 percent interest and must be paid back in five years.

Ways to qualify for bad credit business loans in Reno

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. Businesses around Reno, Carson City, Las Vegas and India Reservation areas can get the money. There is $500,000 allotted for these loans in Nevada, and $100,000 was handed out within the first five days of the program. It is expected the $500,000 won't last long. It will take a month at the longest to distribute it all.

What you need to know about microfinance

“Microfinance” and “microlending” are becoming popular terms. Most microfinance programs lend less than this Reno loan program even though "microlending" is what the United States Department of Agriculture is calling it. Usually microfinancing is for those who do not make very much money. They have very low income. Microlending typically comes in amounts around $1,000 — making the RNDC “microlending” program comparatively gigantic. Most microlending from developed countries to creating countries is through private individuals, but there’s a “hole” in the credit industry for businesses without good credit history and without money to develop their own companies.

Information from

RGJ

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