SMIF receives $75,000 grant from Bank of America
Published 9:26 am Wednesday, December 1, 2010
The Southern Minnesota Initiative Foundation recently received a $75,000 grant from Bank of America to shore up its loan reserves and increase the number of microloans to local businesses.
“We appreciate this grant from Bank of America because today’s economy is spurring the demand for microloans in our region,” said SMIF President Tim Penny. “We know it’s important for SMIF to continue to leverage local resources with those from outside our region that will help our small businesses succeed.”
Last year SMIF awarded $284,000 in small loans to 11 entrepreneurs across the 20-county region through its microloan program, funded through the Small Business Administration. More than 100 small businesses have received funding totaling more than $2 million over the past 10 years.
This grant award is part of Bank of America’s efforts to help nonprofits capitalize on the microloan funds through the U.S. Small Business Administration. Bank of America is the nation’s largest CDFI lender with more than $1 billion invested with 120 CDFIs in 37 states and recognizes that helping to strengthen small businesses and new start-up companies stimulates job creation and is critical to the nation’s recovery.
In southern Minnesota, under the program administered by SMIF, more than 200 jobs have been created and over $1.5 million leveraged as a result of the loans awarded in the past nine years.
Diane Lewis, SMIF lending director, is pleased with the announcement.
“We continue to see increased needs in our communities, and we believe that new micro loan dollars, along with leveraged resources from our partners, will support the growth of our regional economy.”
In addition to loans, the program provides assistance to qualified clients who are in need of technical business support. To date, the foundation has provided an estimated 10,000 hours of support in technical assistance to clients.
For more information on microloans contact Marcia Haley, marciah@smifoundation.org, 507-455-3215 or visit the website www.smifoundation.org and click on ‘Entrepreneurs.’