Micro loans contribute to sustainability in small businesses. Of those financed in 2010, 97 percent of those surveyed were still in business in 2011.
San Francisco, CA (PRWEB) April 04, 2013
The Aspen Institute, Accion and Opportunity Fund released an exciting new report that highlights the importance of Micro Loans for small businesses in the U.S. According the their microTracker lending study called "U.S. Microfinance: Small Loans, Big Results", small micro loans contribute significantly to sustainability.
Nearly 500 businesses participated in the national sample of microloan borrowers. Key findings include:
1) Micro loans contribute to sustainability in small businesses. Of those financed in 2010, 97 percent were still in business in 2011.
2) Micro loans contributed to increases in business revenue and owner's take-home pay. 36 percent had an increase in revenues and 32 percent of owners were able to increase their pay.
In the report, Gina Harman, CEO of the Accion Network, says, "Although this study draws from the experience of approximately 500 microloan recipients, a staggering number of small businesses in the United States struggle to obtain needed capital to grow. Each of these small businesses is able to define in a uniquely meaningful way the opportunity that a loan provides. For some, it is significantly growing a business; for others, it is earning a bit more for their families."
Terry Robinson, President of Sunovis Financial, concurs. "Our economy is driven by small business, and business needs capital to grow, to hire and to thrive. Since banks still have a hard time lending, and because of credit requirements, small business owners are often unable to get a traditional bank loan. But the alternative cash flow loans or Micro loans do offer a strong option for many small business owners today."