Loan fund helps counties support entrepreneurs
The City and County of Honolulu’s Office of Economic Revitalization envisioned a microloan program for some time, but adding an Economic Recovery Corps fellow finally made it happen. The City and County of Honolulu has introduced the O’ahu Small Business Loan Fund, a program that provides low-cost loans to local and underserved entrepreneurs. The loans, which range from $5,000 to $50,000 at below-market interest rates, expand eligibility using character-based underwriting and do not have credit score requirements. The loan fund is structured as a public-private partnership with Feed the Hunger Fund, which provides wrap-around support and expertise at no cost. The program uses a loan loss reserve, a financing model that leverages initial public investment to unlock private capital. If an eligible loan defaults, the CDFI can use its own capital to cover its losses up to the total capped amount. The small business loan fund demonstrates how counties can leverage public-public partnerships to stretch limited public dollars and amplify impact.
نشرت : في الامس بواسطة في Business Finance
Small businesses are not just a source of job creation and tax revenue for a county, nor are they just an ownership stake for an individual. From neighborhood shops to high-growth startups, a vibrant ... [5576 symbols]
