How to identify the right Microloan for your business

Most people believe that when you apply for a microloan the “one fits all” concept will be the norm. With microlending, this is not true. Microlenders lend up to $50,000 with slightly higher interest rates than bank loans; however, they have a much more flexible underwriting criterion. Are microlenders lending in Detroit? Absolutely. They are providing access to much-needed capital for entrepreneurs throughout the city. Microlenders usually will lend to entrepreneurs if they don’t qualify for traditional small business loans, but what we are seeing in Detroit is that microlenders and traditional lenders are partnering on loan deals with entrepreneurs. Community lenders are filling in the lending gap between microlenders and traditional lenders (i.e. Detroit Development Fund, Invest Detroit and other similar lenders).