Get Extra Collateral to Fund Your Ohio Business. Get Access to More Funds in 10 More States

One of the biggest roadblocks in business funding for newcomers is finding the collateral that will make you a good loan prospect.  Many just don't have enough.  The Ohio Development Services Agency has a fairly new program to help.  It's the Collateral Enhancement Program.  It can provide up to 30% of the loan collateral for a small business (up to 50% for certified minority or women-owned businesses, or businesses in the HUB Enterprise zones. While business owners cannot apply for the collateral, lenders can.  However, if you think collateral might be an issue, you can contact a local Development Services Agency office and ask them to direct you to a lender that participates in the program. 

This program is the result of a grant from the U.S. Treasury Department to enhance the access of capital to small businesses in 11 states.  If you a small business owner in the other ten states-- Tennessee, Iowa, Idaho, Texas, Mississippi, Louisiana, Florida, Virginia, Oregon, and Alabama-- use the links to your state's business development office to find out what programs might be offered in your state.

Finding More Microlenders in the United States

I’ve written about microfinancing and microgrants for for-profit outfits before, but wished to add news about an established group and its activities in the United States. Kiva is a nonprofit organization that has given aspiring business people in economically developing countries a chance to get microloans, while giving people in affluent countries a chance to loan them the money.  What is less known is that they have partnered with nonprofits in to provide microloan opportunities for business microloans in the U.S.

Kiva’s partner page lists their partners around the world, but you can limit by world region.  In North America, they partner with ACCION, a nonprofit that loans in the Texas and Louisiana areas, as well as ACCIONAmerica, which loans across the United States, the Opportunity Fund,(California)  and Grameen America.  Check out these organizations if you are interested in getting a microloan, or Kiva if you have an interest in financing a microloan for up-and-coming business people in the United States, as well as other countries.

Kiva is also working with ACCION America to work in specific cities.  The first was Detroit, and its first round of financing has already been distributed.  More financing will be available in the future, so check it out if you are interested and in the Detroit area.  And stay tuned for more microfinance opportunities in other cities.

Trying to Plug the Brain Drain

States are trying various ways to hold onto to their educated young people, the ones who may otherwise see no future in their home towns. Ohio is trying with the Grants for Grads program. In it, first time homebuyers who have graduated from a college or university in the last 18 months, and graduates of an Ohio high school who meet the income limits are eligible to have a grant to buy a home in the state. They can qualify for a grant of up to 2.5% of their home's purchase price, which will not have to be paid back if they live in Ohio for the next 5 years. For more information, see the website or call 888-362-6432.

The Louisiana has an interesting twist to their Grants for Grads program: native Louisianans who get a degree, either in or outside the state, or those outside the state whose parents are from Louisiana and reside in the state at the time of their graduation, must register within 60 days of graduation to be eligible. No earlier than 2013, a drawing of those registered graduates will be held, and 100 of them will receive the grant to purchase their primary residence. They will be well-rewarded for sticking to the state: their grant will be the total of the last 5 years of their state income tax or $10,000, whichever is the less (for single taxpayers), and, for married taxpayers, either the total of both their last 5 year's state income tax or $15,000, whichever is the less.