Micro, Alternative lenders and Bad Credit loans

Micro & Alternative lenders


Microlenders lend smaller amount to individuals who do not require much capital. For example these loans could be used for home based or crafts businesses. Banks and other non-profit/for-profit lenders offer micro loans. Banks and other institutions do not usually require a business plan or financial projections, just the borrower’s personal and credit information.

There are quite a few non-profit organizations that do microloans for individuals who have low credit scores, little credit history or do not have collateral. Usually, loans below 25,000 are termed microloan and banks process them as such. In most cases banks will not make use of an SBA guarantee with microloans, due to the cost and time require making this small loan.

Alternative Lenders

These are specialized lending institutions that have different evaluation and risk criteria than banks. Though banks are larger institutions that have a greater lending expertise, these institutions are specialized in different industries (such as restaurants, clothing companies, etc) business size, or take higher risks than banks, allowing them to make loans that a bank might decline. They usually charge higher interest rates since they are making riskier loans and/or have higher operational costs.

Alternative lenders usually make smaller loans and have a community focus. Credit unions, local development corporations and other non-profit lender can be labeled as alternative lenders.

Non Profit Profiles:

The Audubon Partnership for economic Development LDC
Bethex Federal Credit Union
Business Outreach Center (BOC) Network
Business Resource & Investment Service Center
CAMBA Economic Development Corporation
Count Me In
East Harlem Business Capital Corporation

Greater Jamaica Development Corporation

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