Small business entrepreneurs are turning to micro loans at federal and state levels, with standard lenders keeping a tight hand on loan funds. These federal funds are available to business owners and entrepreneurs via the Small Business Administration (SBA). Currently, the cap on small loans through the SBA has been raised from $35,000 to $50,000 as a result of the Small Business Jobs Act, which was signed into law only last week. The law also extends the term of a loan repayment up to five years.
Tennessee ECD-BERO Awards Micro Loans Through ARRA Funds
Not only are the Feds stepping up loans to micro-businesses, but states working through the American Recovery and Reinvestment Act (ARRA) of 2009 are also doing the same. During the same year, Tennessee’s Economic and Community Development (ECD) agency created the Business Enterprise Resource Office (BERO). Both BERO and the ECD were developed to help micro-business entrepreneurs in Tennessee to grow their businesses, leading to the ECD-BERO Rural Micro Loan Fund.
Jane Easterly of Cleveland, Tennessee, contacted BERO when she decided to start her new business venture – Recycled Elements of Design. Her business recycles materials left behind from interior design projects and turns them into fashionable purses. Funding from BERO allowed Easterly to create a business plan and receive business micro loans of $10,000. Thanks to the funding from BERO, Easterly has hired expertise to help identify her primary customers and create a marketing strategy.
Microgiving congratulates recipients like Ms. Easterly and other small business entrepreneurs who seek creative ways to meet their needs. Microgiving works to help those in need by doing just that: micro-giving. If you would like to help others, or you could benefit from the assistance of our donors, please visit our website and see how micro loans can help.
