It takes money to make money.
That is the plain and simple truth in business. A shortfall of capital is one of the most commonly cited reasons why a company is unable to expand business and succeed. The prospect of getting financing for a start-up even in a growing economy is very difficult due to the fact that business owners lack operating experience and solid credit history.
Maryland Capital Enterprises provides funding for small and micro businesses that wish to start or expand their businesses. We are the only micro-enterprise organization in the state of Maryland certified as SBA, USDA and CDFI Intermediary Lender.
MCE is funded through Federal and State grants, as well as private contributions, foundation funding and fundraising efforts.
MCE has assisted over 1,200 entrepreneurs, provided training to more than 2,200 individuals, made over 115 loans totaling over $2.2 million.
What is Micro Lending and Who Can Use It?
Micro Lending is the extension of very small loans (microloans) to the unemployed, to poor entrepreneurs and to others whose requests are not considered bankable. These individuals may be start-ups or lack collateral, steady employment and a verifiable credit history and therefore cannot meet even the most minimal qualifications to gain access to traditional credit. These loans go to businesses that employ fewer than 10 people, need $35,000 or less in capital and do not have access to traditional lending sources such as banks.
Microenterprise Development is a financial innovation originating in Bangladesh. It offers counseling, training and loans to small groups of entrepreneurs and is peer lending. It was Americanized and fine tuned in South America and extended larger loans to individual entrepreneurs. Micro Lending at Maryland Capital Enterprises evolved similarly. It started with loans up to $500 to individual entrepreneurs in peer groups of six and has evolved to offering micro-loans up to $50,000 to individual entrepreneurs as well as small business loans up to $250,000.
Who can use Microcredit?
Microcredit can be used if you are currently self-employed and need capital to expand your business, have an idea for a start up business, want to expand your business beyond your home, need financial, marketing and management support with your business, need small business training, need a loan for purchasing equipment or for working capital, have been denied a business loan from traditional lenders and have limited credit and little collateral.