Center offers micro-loans for local startups

The Maricopa Center of Entrepreneurship has begun a micro-loan program to give local startups a push in the right direction.

MCE, through the city, has partnered with the Northern Arizona Center for Entrepreneurship and Technology and was given a $25,000 stipend to provide loans to small businesses in the community. Likely to be distributed in increments of $2,500 to $5,000, the size of the loan depends on the need and circumstances of the business.

“We haven’t given out any micro loans as of yet, but we’ve had some interest,” MCE director Tom Baxter said.

While many businesses in Maricopa may be looking to apply for the loans, Baxter said MCE is going to be choosy in its approval and follow a strict set of requirements when considering a business.

“We are a business incubator, focused on taking business’s to the next level. Unlike other organizations we have a limited number of spots so we have to be selective,” he said.

Applicants must submit a sound and functional business plan, have reasonable credit and must previously have been denied for a business loan from a bank.

“The entry requirements that banks have don’t necessarily mean the business is a risk, maybe they just haven’t been alive long enough. We want to be sensitive to this group and give them what they need,” Baxter said.

If approved by a five-member selection board, applicants will present their business plan and explain why the money is necessary and how the funds will be used.

Receiving one of these loans doesn’t come without substantial work on both ends of the process.

If approved, recipients will be required to attend monthly meetings to discuss their ventures and disclose where the money is being allocated. Baxter said this not only will allow MCE to keep track of its investment, but will also make sure recipients use the expertise offered through the organization.

Micro-loans are not all that the MCE provides and those in need of loans are not the only ones is seeks to help.

Already established mentor programs within MCE pair small business owners with already established entrepreneurs to guide them and give them the tools and information necessary to succeed.

“Our mentors come with a significant amount of experience and are at a point where they want to give back to their community,” Baxter said.

Though the funding is currently limited to $25,000, Baxter said he is pursuing other means of funding and hopes to keep the micro-loan program as a continuing means to fund Maricopa entrepreneurs.

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