Nonprofit organization Lendreams announced Monday the reopening of its Microfinance Program, designed to encourage self-employment among low-income women or to create employment opportunities for low-income people.
The program, which feeds from federal Health and Human Services funds, is available for new or existing businesses, provides micro-loans up to $10,000 to establish or expand a business.
“As part of the program, we guide future businesswomen throughout the process and advise them on the best alternatives to successfully set up their business,” said Giovanna Piovanetti, executive president of Lendreams.
Among the benefits of “Siemprexitosas” program participants are below current market interest rates, ranging from 5 percent to 7 percent fixed annually for a six-year term. The loan can be used to buy inventory, materials, furniture or commercial equipment, improvements to physical plant and working capital.
During the loan application process, the Lendreams team offers assistance in preparing the business plan and business technical assistance in the different areas that are needed for the development of the business.
“We also offer psychosocial technical assistance to keep them motivated and focused on their business,” Piovanetti added. The program will be available until Sept. 30, 2017.
On the other hand, for greater financing needs, the entity also has available Small Business Administration Micro-Loan program that offers loans of up to $50,000 with no capital contribution from the client.
It is designed to provide funding to acquire inventory, materials, furniture and commercial equipment, improvements to the physical plant and working capital.
“We not only provide financing, but also provide free technical assistance in our Micro-Loan Program, free of charge to the entrepreneur for all the years they have their loan with us,” Piovanetti said.