110 votes
state micro-loan fund for small business start-ups
micro-loans have helped many around world to start businesses; rather than depend on banks (ha!) the state provides small loans sufficient to get a new business running (connect borrowers with SBA & other existing services)
Roland Durphey Menard III
* ADMINISTRATOR * In response to the critical need to be able to link through using Jeremy Roger's posted link. Instead of trying to open it in a new window. Open it on the same page. I tried both ways and the latter worked. You also have to click " More " , below the URL, first before you try opening it. It will pop up. I like this one idea.
Randy
If we're really interested in helping people get a new business going then the loan should be at zero interest. The rewards to the State will come from new jobs created.
AZehav
A better idea is to create a State Bank of Oregon--see below. Bradbury dedicates a whole section of his website to this great idea.
Ideas for Oregon
Jeremy on this idea about micro-loans for small business startups, you posted a link to a report by the Oregon Business Development Dept. talking about best practices from other states in improving access to capital through programs either sponsored by the government or done in public/private partnership. We cant get that pdf to load. Would you mind reposting it here?
Jeanene
Money to invest in small business start up at a reasonable interest rate is a great idea. The SBA is a joke. A local bank or credit union is better. A state program that reaches out through business development centers might work. An idea well worth developing.
Jeremy Rogers
We are hosting a conversation on ideas to improve the availability of capital for Oregon companies on March 4th. If folks are interested in participating let me know and I can get you the information. jrogers at oregonbusinessplan.org
Jeremy Rogers
Improving the availability of capital is the biggest issue we are hearing about re: economic recovery. I applaud the Governor for highlighting this issue. I wanted to point folks to a recent report by the Oregon Business Development Department that looks at best practices from other states in improving access to capital through programs either sponsored by the government or done in public/private partnership. That report is located here: http://www.oregonbusinessplan.org/documents/BenchmarkingBusines... more
Improving the availability of capital is the biggest issue we are hearing about re: economic recovery. I applaud the Governor for highlighting this issue. I wanted to point folks to a recent report by the Oregon Business Development Department that looks at best practices from other states in improving access to capital through programs either sponsored by the government or done in public/private partnership. That report is located here: http://www.oregonbusinessplan.org/documents/BenchmarkingBusinessOregonFinancingTools12.09.pdf
Gretchen
In thinking about the government-run side of this and other ideas like a state bank, it makes me wonder how long until we have "ballot measure banks" as in Oregonians and their legislature seem to be relegated to ballot measures for any important policy decisions
T.A Hope Barnhart
Greg, thanks for that lead. i just began my research (after getting a thumbs-up from both the Gov & a county commissioner i consulted).
Kari, i think thru the counties might be best, part of their local economic development work. they could "hand off" to others, but that's a detail to be worked out in the Leg process, i think. "local" is an important part here.
anyone wants to help me get this rolling, drop me a note via FB or Twitter.
Mike Sax
I love this idea!
It's easier for a consumer to get a loan for a new car or a big screen TV than it is for a small business to loan money for a new investment that creates jobs.
The state could co-sign part of small business loans that create new jobs. This has several advantages:
- It would greatly increase the access to capital for small businesses.
- The banks would promote the program to small businesses who want to get loans.
- It takes advantage of the existing infrastructure and m... more
I love this idea!
It's easier for a consumer to get a loan for a new car or a big screen TV than it is for a small business to loan money for a new investment that creates jobs.
The state could co-sign part of small business loans that create new jobs. This has several advantages:
- It would greatly increase the access to capital for small businesses.
- The banks would promote the program to small businesses who want to get loans.
- It takes advantage of the existing infrastructure and mechanisms in place to grant loans that "make business sense".
- By co-signing/providing a guarantee, the state doesn't need to spend any immediate cash.
- By covering part of the loan and not all of it, most of the risk - but not all - is eliminated for the bank, leaving the bank still enough incentive to not abuse the program by granting irresponsible loans.
Greg Diamond
There's actually a US precedent for this over in South Dakota.
http://www.sdreadytowork.com/fi/MicroLoan.asp
Cool idea.
Kari Chisholm
TA, would you have the state actually making the loans directly - or using those funds to guarantee loans made by private banks?
Veronica C.
I agree with this idea. Oregon needs to think bigger and more creatively. There are many projects we could spearhead statewide to create a 21st century place to live.