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New Lending Program Targets Reno Businesses With Loan-lending Troubles
The Rural NV Development Corp. is kicking off a new “microlending” program. The U.S. Department of Agriculture-funded program focuses on companies that could not otherwise qualify for loans. Over 20 percent of the money available for this program has already been awarded. This could help people stay away from payday lenders if they can get the financing somewhere else.
Reno, Nevada, rural development loans
A new “microlending” program will start due to a $500,000 grant that the U.S. DOA is funding. Bad credit loans for Reno and Reno-area companies can be funded because of the United States Department of Agriculture Rural Microentrepreneur Assistance Program being started. Up to $50,000 could be given to businesses denied traditional banking loans with these loans. The fixed-rate loans charge between 10 and 12 percent interest and must be paid back in five years.
What you need for a Reno bad credit business loans
There are criteria that have to be met for a Rural Nevada Development Corp. loan to be offered. Less than 10 employees in the business are allowed while less than $1 million a year in gross revenue is allowed. The business also must have applied for traditional loan financing and been denied. There are only a few areas that can get the money. These include areas around Indian Reservations, Las Vegas, Carson City and Reno. There is $500,000 allotted for these loans in NV, and $100,000 was handed out within the first five days of the program. It is expected the $500,000 won’t last long. It will take a month at the longest to distribute it all.
What you need to know about microfinance
“Microfinance” and “microlending” are becoming popular terms. Though the USDA is calling this Reno loan program “microlending,” it lends much larger amounts than most microfinance programs. Microfinancing is typically targeted towards very low income individuals, often in developing nations. Microlending usually comes in amounts around $1,000 — making the RNDC “microlending” program comparatively gigantic. Most microlending from developed countries to developing nations is through private individuals, but there’s a “hole” in the credit industry for companies without good credit history and without money to develop their own businesses.
Citations
RGJ
rgj.com/article/20110201/BIZ/102010321/1321/news
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How good is a usda mortgage loan? My husband and I got approved for one but I’m not sure how it works.?
We are approved but I’ve heard that they are much like an FHA loan and I’ve heard that I need to stay away from those type of loans. I’d like to know if I decided to refinance later down the road would there be a penalty and would I have to pay anything back to USDA.
two kinds of these loans. No recapture and some with recapture.I would stay away from the recapture loan as when you do refinance they take a chunk of the equity in value back as they have subsidizes the loan for lower note payments. These are the hardest to refinance