Once upon a time, microloans were primarily for entrepreneurs who
lived in economically disadvantaged communities or were considered part
of underserved populations. During the recession, however, microloans
became an important resource for a wider range of entrepreneurs, many of
whom are seeking the loans to supplement other capital sources or even
to expand their businesses.
Statistics from the industry organization Opportunity Finance Network show that 56 percent of microfinance lenders received a greater number of loan applications this year.
Microloans are made by nonprofit organizations that are funded by the Small Business Administration (SBA); federal, state and local government agencies; or private donations. But the recession has put a crunch on microfinance organizations at the same time that more entrepreneurs are turning to them for help.
To read the full, original article click on this link: Trends in Microfinance
Author: Rieva Lesonsky
