Historically, big banks have shied away from making microfinance loans because they are considered to be unprofitable. Accordingly, when looking for a microloan, you need to begin with smaller players, and even some nonprofit players. Microloans are typically available on the local level through community financial institutions. For example, Ryan Fochler was able to finance his pet-sitting business via a microloan from a local nonprofit. That is how these sorts of loans usually work. And, while there are some big names in the tiny loan game, it is all relative. They are “big” by microloan standards, but not by many other measures.
To find a microlender in your area, it is best to begin with a simple Google search of the name of your city or region and “microloan.” Beyond that, here are some other good options to check out as you search.
ACCION USA. ACCION is a great group and a significant microloan lender throughout the country. Their own website puts it best:
ACCION USA is different from a bank or credit union. ACCION USA is a microfinance organization that lends with the mission of empowering business owners with access to working capital and financial education. We are a recognized leader in small business lending, and a partner you can trust. ACCION USA offers business loans up to $50,000 and financial education throughout the United States. Since 1991, we have specialized in working with small business owners who cannot borrow from the bank due to business type, ...