If the Banks aren't lending - where to turn??
P2P lending sites and Nonprofits are stepping in!
Interesting reading in the sunday North County Times! With the credit crunch showing no signs of easing, "Only grade 'A' clients with collateral are getting funding" according to a director at the Entrepreneurial Management Center at San Diego State University, small businesses are turning to unique sources for the credit they need for day-to-day operations or to finance expansion.
Check out the San Diego based nonprofit Certified Development Company-Small Business Finance. The Small Business Administration has 266 Certified Development branches in the nation! For 46 years the SBA has been helping people start and grow businesses. They have 3 alternative non-bank programs available; micro loans of $35,000 or less, loans up to $200,000 in partnership with a consortium of banks and a seperate loan program to fund business real estate acquisitions. Certified Development direct lending through it's three programs rose 230% in the past 2 years.
Another quickly growing alternative seems to be online peer-to-peer lending sites! P2P loans in 2007 were approximately $647 million. That has grown to $3 billion and is expected to double next year. This increasinly popular process links people with money to invest, lured by higher interest rates, with borrowers who need the money! Investors at one such group; Prosper and Lending Club, make loans averaging $3500 and earn approximately 9.38%! source: IntelligenceReport Parade.com/intel