New Yorks SEFCU Finances Microloan Program
ALBANY, N.Y. – SEFCU is partnering with the University of Albany and Empire State Development to launch a $2.5 million “character-based” microloan program.
SEFCU is putting up the $2.5 million for the revolving loan fund which will link faculty, staff and students from the UAlbany School of Social Welfare, the UAlbany School of Business, and the state Small Business Development Center with financial support from SEFCU and Empire State Development.
Participating entrepreneurs will receive eight weeks of training in such areas as business planning, legal issues, marketing and financial management. Those who complete the course will get help in developing a business plan and financial projections to be submitted with their loan application.
The loan fund will assess an entrepreneur’s creditworthiness based, in part, on his or her relevant expert knowledge, entrepreneurship, understanding of his or her industry, and ability to handle crises. The goal is to extend credit to populations historically left out of small business investments and loans.
UAlbany also plans to use the program as a pilot project to study the barriers entrepreneurs face and how they can be overcome.