Why Microfinancing Works
(Inc) — Hester and Jason Rodriguez learned quickly that banks weren’t going to be much help to them in their dream of opening a restaurant in Corpus Christi, Texas. The couple had what they thought was a solid plan, plus about $20,000 in savings and a stash of used restaurant equipment. But even though the couple owned their home, bankers felt they lacked sufficient capital and denied their loan applications. Fortunately, the city’s Small Business Development Center pointed them toward Accion Texas-Louisiana, a nonprofit microlender that was willing to make a low-interest loan of $25,000. (The interest was made even lower by a Corpus Christi program that buys down debt for new and existing small businesses that can create jobs.) It was just enough to get Hester’s Café up and running.