When you’re a small-business owner on a quest for capital, there are several smart reasons to turn to nonprofit lenders. These lenders go beyond making small loans to entrepreneurs and provide some benefits that traditional lenders don’t:
- Profit is not their objective. Many microlenders are called mission-focused or mission-based lenders. They offer loans from government or nonprofit programs geared to helping disadvantaged communities, including areas that are struggling economically. Some microlenders also operate internationally, helping entrepreneurs in developing nations.
- Microlenders typically offer loans of $50,000 or less to startups and other small-scale operations. Some make bigger loans to more established businesses.
- Many microlenders and nonprofits provide pro bono consulting and training, including helping small businesses build credit.