Local Micro-loan Program Helps Businesses Grow – Dothan Eagle: Business

Counseling Is Often More Valuable Than a Small-Business Loan – WSJ

The minimum loan is $4,000 and the maximum is usually about $20,000. For the Tharpes, the microloan program offered welcome help at a time when they werent sure how to proceed. When the gym took off, we were not expecting it, Emily Tharpe said. We thought it would be small, and wed be able to run the two (businesses) out of the same unit. Well, it grew, and so we needed more equipment. Gym equipment is kind of a goofy thing to try and get financing for because its hard to assign value, she said. Its not a good investment for a bank. While the Tharpes could have financed equipment or used a credit card, the interest rates would cost too much. Jeremy Pate, owner of Folklore Brewery, agreed.
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(MultiFunding at times accepts fees from lenders that agree to make loans.) What she is referring to is something I encounter on a regular basis as well. Small-business owners often believe that loans are a remedy for nearly all business problems. However, a loan isn’t always the best answer. In fact, it can oftentimes worsen the problems small-business owners are facing by putting them even deeper into debt when that may be unnecessary. piggy bank with band-aids CREDIT: iStock piggy bank with band-aids CREDIT: iStock By acknowledging the fact that many small-business owners use loans as a crutch or a Band Aid for lingering business problems, Ms. Contreras-Sweet is taking a definitive step toward helping small businesses across the country grow responsibly and with purpose.
For the original version including any supplementary images or video, visit http://online.wsj.com/articles/counseling-is-often-more-valuable-than-a-small-business-loan-1404757599

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