Businesses owned by those with low incomes, or disabilities, or by women and minorities who traditionally find it difficult to find the funding they need have a new financial resource.
The Fifth Third Bank Venture Fund -- a collaboration between
Fifth Third Bank and
Cornerstone Alliance Small Business Services -- will go to entrepreneurs who need small business loans but lack commercially acceptable credit, business ownership experience or adequate collateral. The Venture Fund, a $10,000 loan fund, is part of a $50,000 grant the bank awarded to Cornerstone Alliance.
Applicants receive training and technical support from Cornerstone Alliance Small Business Services. "Once an applicant is approved for a Venture Fund loan, staff and volunteer business advisors will nurture the relationship between these borrowers and established banking community to expand the long-term financial opportunities for their small business," says Cornerstone Alliance Senior Vice President and Chief Operating Officer Greg Vaughn.
Area entrepreneurs may be eligible to borrow and repay progressively larger amounts, starting with loans as low as $500 and up to $5,000. Total debt of the project must not exceed $25,000. Initially, the emphasis will be serving those in rural Cass and Van Buren counties. All loans will have a fixed interest rate of 10 percent.
Funds may be used to purchase business equipment such as machinery, fixtures, or furniture. The funds also may be used for business supplies, materials, inventory and as some working capital.
The money cannot be used to pay off existing debt, tax payments, purchases of real estate or down payment on real estate.
Fifth Third Bank’s Vice President, Community Affairs Manager Patrick Lonegran says, "The goal is to help these entrepreneurs become 'bankable' in the future and eligible for larger loans from commercial lending institutions such as Fifth Third Bank."
Writer: Kathy Jennings, Second Wave
Source: Jamie Nilson-Balkin, Cornerstone Alliance
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