Nevada makes $5.3 million available for small businesses
Lenders will be offering fixed-rate loans up to $250,000
CARSON CITY, Nev. (KOLO) - The State of Nevada has announced it has made $5.3 million available for small businesses in the state.
Nevada is the first state in the nation to launch a novel microloan program under the federal State Small Business Credit Initiative. The program features a newly developed refinancing mechanism to strengthen Community Development Financial Institutions lending to small businesses.
“I pledged in my State of the State address that my administration will restore Nevada’s reputation as a pro-business, pro-development state,” Governor Joe Lombardo said. “I think we can all agree Nevada should be the most entrepreneurial-friendly state in the nation.”
In 2022, the SSBCI was approved for up to $112.9 million, with Nevada receiving its initial tranche of $35 million.
Battle Born Growth Microloan will receive $5.3 million for the first three-year tranche and nearly $16 million in total. They will work to help small businesses from traditionally underserved communities.
A study from the University of Nevada, Reno found the program had a total economic impact of $180 million for the area. The Rural Nevada Development Corporation and Access Community Capital are among the community lenders participating.
The Nevada Small Business Development Center will be providing free help with credit counseling, financial statements, business planning, general business guidance, and more.
Lenders will be offering fixed-rate loans up to $250,000 with rates from currently 8.75%-11.75% depending on terms. Length of loans can range from between three and six years.
“This is a groundbreaking structure benefitting Nevada’s small businesses seeking smaller amounts of funding particularly businesses from communities that have been underserved by traditional lenders in the past”, said Karsten Heise, Senior Director Strategic Programs & Innovation at GOED and SSBCI Program Administrator. “Being able to offer an online matching platform represents a major step forward for Nevada’s small businesses to find financing and support options easily and effectively.”
Copyright 2023 KOLO. All rights reserved.