Finance expert Mike Periu on viable crowdfunding solutions for small business loans.
Where Can Small Businesses Turn for a $10,000 Loan?
November 06, 2012 If your company needs to borrow $10 million, most large banks will fight for your business. But what if you need to borrow $10,000? Don’t expect the same treatment or an approval. Finding lenders interested in such small loan amounts is a challenge, which is way the Small Business Advocacy Council launched the SBAC Connects program.
SBAC Connects offers small-business loans of up to $10,000, which are partially funded by crowdfunding. How it works is multiple SBAC members each pitch in a small part of the loan principal which together allow you to borrow the full amount requested. Borrowers indicate the amount of money they want to borrow and the maximum interest rate they are willing to pay. Members then compete for the right to lend money by indicating the interest rate they want to receive. The most competitive bidders (meaning those requesting the lowest rate) win.
About Mike Periu
Mike is a seasoned executive with experience in small business finance and management. He is the founder of Proximo, LLC a leading provider of corporate, consumer and small business education and training services with an emphasis on finance and technology.
Mike Periu is also a leading national voice for individual empowerment through financial education and entrepreneurship. He has been interviewed over 500 times in national and international media, including NBC, Univision, CNN en español, Telemundo, HITN, TVE, RTE, SBS, MegaTV and others.
Mike writes regularly for American Express OpenForum, Yahoo! Finanzas and is a Huffington Post contributor.
Mike has degrees in Finance and International Business from Georgetown University. He is on the Board of Directors of the Council for Economic Education and was a Fellow at the Kauffman Foundation’s Labs for Enterprise Creation.
