Not all small businesses require a large amount of money and many of them don’t fit the lending criteria of a traditional lender. That’s where SBA’s Microloan Program comes in. The Microloan Program provides small, short-term loans up to $50,000 to small business concerns and certain types of not-for-profit childcare centers. And microlending is pretty big in Missouri.
During the first 5 months of FY 2012, between October 1, 2011 and February 29, 2012, SBA’s microloan intermediaries in eastern Missouri originated 77 SBA-guaranteed microloans totaling just over $421,000. That works out to an average of $5,468 per loan, with an average interest rate of 9.04% and an average maturity of 58 months. Twenty-nine of those loans were to what SBA regards as start-ups, with the remaining 49 being made to already existing small businesses.
35 of the 77 loans were made to 100% woman-owned businesses, 11 to 51% woman-owned firms, with the remaining 31 loans being made to businesses that were 50%, or less, owned by women. Three of those loans were made to veterans.
65 of the 77 microloans made in eastern Missouri during the first 5 months of FY 2012 were to businesses owned by black or African-American business owners.