Micro loans are smaller loans, made to eligible borrowers in amounts that range from $5,000 to a maximum of $30,000. They were created because traditional lending institutions have typically not made such small loans. Additionally, the lending criteria for a micro loan may not be as stringent as those established by commercial lending sources. This has made it possible for funds to be available to women, low-income and minority entrepreneurs, small business owners, and other individuals possessing the capability to operate successful businesses but lacking in areas such as perfect credit or personal assets. Loan proceeds can be used for working capital, equipment, furniture and fixtures, inventory, and leasehold improvements. The proceeds cannot be used to refinance existing debts.
Contact the Small Business Resource Center in Baltimore for assistance in determining if a micro loan is right for you at 443-451-7160 or at www.sbrcbaltimore.com. Or, contact the Baltimore Development Corporation at info@BaltimoreDevelopment.com or call 410-837-9305.