Micro Loan Approvals on the Rise

Micro Loan Approvals on the Rise

VSBFA Micro Loan Program is an excellent resource for the small business community. SBDC analysts throughout Virginia were able to assist 13 small business owners in being approved for loans in 2013 that were used for expansions, operations, etc.    This was another successful year for the entire state.  Debra Hamilton Farley, Associate Executive Director/Business Analyst with the Hampton Roads SBDC, leads the state in the number of referrals to the VSBFA Micro Loan Program for both 2012 and 2013.

The VSBFA Micro Loan Program is by far the “best loan program for the typical Small Business Owner to take advantage of during my 24-year tenure, said Farley.  “This micro loan program has allowed my clients to secure necessary funding within a shorter time frame and with less paper work.  Many of the small business owners within the community typically only need enough cash to allow them to purchase that one piece of equipment or to safe guard the operational account until they are paid for a specific contracted job.  And then there are those who need to expand, so the funds can be used to purchase marketing materials, computers, software, and acquire the ecommerce assistance necessary to enable them to move the business to the next level.” 

As a general rule, the maximum loan amount is $10,000; however, Farley says that a business owner who is referred by an SBDC analyst (completion of form and signature is required), can opt to apply for the $25,000 loan amount.  While the borrower have fewer eligibility requirements for approval, they should not assume that the business analyst will sign off for the $25,000 loan amount without being able to provide proof that this amount will help the business in moving forward successfully.  In other words, while nothing is guaranteed 100%, the analyst will only suggest the loan if they are convinced that the loan approval will produce positive results for the business. 

For additional information about the VSBFA Micro Loan Program, please contact  the Virginia Small Business Development Center, www.virginiasbdc.org; or Mary Jo Sisson–Vaughan, maryjo.sissonvaughan@sbsd.virginia.gov.

 

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