12 Reasons Business Loans Are Turned Down = 1 Great Reason to Get a Microloan

March 13, 2014

Forbes.com published an article about a recent report from Pepperdine University's 2014 Capital Markets Report showing that 89% of business owners are looking to grow their business but only 46% have the financial resources to do it. In addition, the university's survey of small business owners reflected that only 39% of the small businesses surveyed that sought business loans from a bank this year, were actually approved. Small businesses continue to have a harder time obtaining a loan. The top reason for declined loans was cash flow, followed by insufficient collateral or debt load. Six percent were declined for just simply being to small of a company.

In 2011, Pasco Economic Development Council recognized the need for a program that allowed small loans to be made to local businesses who had exhausted their resources and couldn't find the means to obtain traditional credit. Over the course of a year, Pasco EDC raised $250,000 through public and private partners including the Pasco County Board of County Commissioners, Wells Fargo, CenterState Bank, Suncoast Schools Federal Credit Union, Bank of America, Saint Leo University and private donors including Tim and Patricia Tangredi. After raising the money and gaining support from the community, Pasco EDC launched it's microloan program for entrepreneurs in 2012.  The community based microloan fund acts as a loan source for credit worthy small businesses in Pasco County, Florida. The loans are coupled with free technical assistance for the entrepreneur through partners participating in the Pasco Enterprise Network. The goal of the program is to create a stronger economy, increase job opportunities and provide entrepreneurial education in the community.  The loan also helps certain types of disadvantaged businesses who often have difficulties accessing credit, such as women-, minority-, veteran- and disabled-business owners. For more information on Pasco EDC's microloan program call 813-926-0827 or click here to download an application.