More Microloans for Small Businesses

Lenders that typically do business abroad are helping to fill a small-business lending gap made wider by the recession.

With small business lending by banks and other traditional money sources still tight, microlenders are picking up some of the slack by providing loans averaging about $7,000 to U.S. entrepreneurs struggling to start and maintain a business.

Though microloans to U.S. businesses by organizations that have largely focused on lending in developing countries are just a tiny fraction of their overall business, they’re sure to grow as the lenders expand their operations in the U.S.

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Neema P. Roshania
Researcher-Reporter, The Kiplinger Letters