New lending program targets Reno companies with loan-lending troubles

A new program targeting smaller businesses in Nevada has started. The Rural NV Development Corp. is administering the program. The U.S. Department of Agriculture-funded program targets companies that could not otherwise qualify for loans. One-fifth of the money has already been handed out. This could help people stay away from pay day loan lenders if they can get the financing elsewhere.

Reno, Nevada, rural development loans

A $500,000 grant from the United States Department of Agriculture is funding a new “microlending” program. There is the USDA Rural Microentrepreneur Assistance program. This will fund bad credit loans to all Reno-area companies. Up to $50,000 can be given to businesses denied traditional banking loans with these loans. Between 10 and 12 percent interest will be charged on the loans that have only five years to pay them back.

While in Reno, what you need to get a bad credit business loan

There are some things a business has to do in order to get a Rural NV Development Corp. loan. Businesses have to qualify. Less than 10 employees in the business are allowed while less than $1 million a year in gross revenue is allowed. Traditional loan financing has to have been applied for by the business that got denied. Companies around Reno, Carson City, LV and India Reservation areas can get the money. In NV, only $500,000 total is being offered for these programs. In the first five days of the program, $100,000 was already handed out. Within the month, the whole $500,000 is anticipated to be gone.

Microfinance information

Many know the terms "microfinance" and "microlending" now. They’re more popular than ever. Though the United States Department of Agriculture is calling this Reno loan program “microlending,” it lends much larger amounts than most microfinance programs. Microfinancing is generally targeted towards very low income individuals, often in developing nations. Around $1,000 is typically paid for most "microlending" programs. The microlending for RNDC is huge when comparing these numbers. Businesses that do not have good credit and don't' have money to work on the business are in a "hole" in the credit industry even though microlending is usually given with private individuals from developed countries to developing countries.

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