Microloan Program Rollout Features $5.3 million In Financing for Nevada’s Small Businesses
A Critical Investment in the Community Lending Ecosystem!
Nevada is the first state in the nation to launch a novel Microloan program under the federal State Small Business Credit Initiative (SSBCI) featuring a newly developed refinancing mechanism to strengthen Community Development Financial Institutions (CDFI) lending to small businesses.
Battle Born Growth Microloan, overseen by the Governor’s Office of Economic Development (GOED), will receive $5.3 million for the first three-year tranche and nearly $16 million in total. The program works to support small businesses from traditionally underserved communities. It partners with mission-driven lenders such as CDFIs.
Small Businesses seeking less than $250,000 in financing are encouraged to consult the dedicated website at NVSmallBiz/Microloans. The website contains a matching platform created in partnership with Community Reinvestment Fund, USA (CRF). On this platform, small businesses will be matched with participating lenders.
At the launch, the following CDFIs and community lenders are participating: Rural Nevada Development Corporation (RNDC), MoFi, NDC, CRF, and Access Community Capital.
The Nevada Small Business Development Center (SBDC) will be providing free assistance with credit counseling, financial statements, business planning, general business guidance, and more. Lenders will be offering fixed-rate loans up to $250,000 with rates from (currently) 8.75%-11.75% depending on terms. Length of loans can range from between three and six years.
The Microloan Program was built by and for non-profit community lenders so they can increase their capacity to serve the state’s un-banked small businesses This is a critical investment in the community lending ecosystem that will drastically increase access to credit for businesses who are often left behind.
