Access to Capital
EDG provides direct loans from $500 up to $35,000 for working and fixed capital to start up or expand existing businesses that are unable to obtain credit from conventional sources. Small businesses, particularly those owned by minority and low and moderate-income persons, generally do not meet traditional commercial lending requirements of collateral, minimum equity investment, business experience, credit history, business management background or loan size. Additionally, traditional lenders often do not undertake such small loans because of the high risk involved.

While we use criteria similar to that used by banks, such as business viability, asset valuation, and credit history, we give greater emphasis to character evaluation. Our staff work 12-18 hours with each client on a one-on-one basis to assess their character and to understand the nature of their businesses. We also use non-traditional assets for collateral such as household items, jewelry and other personal items of value to borrowers.

Small business development is a viable approach for low-to-moderate income individuals to increase their economic self-sufficiency and reduce their dependence on public assistance. Small businesses give an opportunity of ownership to women, minorities, the young and the old, and individuals of various levels of educational attainment. For some individuals, operating a business is their only means of earning an income while others start their own businesses to supplement their income.

Small businesses started by low-to-moderate income individuals not only provide income for the business owners but also help to create jobs and services for other low-to-moderate income persons. Economic development studies have shown that low-to-moderate income persons tend to reinvest their income back into their own community either by hiring individuals from their own community or by providing services to their community.