A new lifeline has emerged for Tucson’s smallest businesses, offering them a much-needed boost in accessing capital.
The Microbusiness Loan Fund, launched by the Community Investment Corporation (CIC) and Groundswell Capital , provides loans of up to $50,000 for businesses with five or fewer employees.
This initiative is part of a broader effort to address the difficulties small businesses face in securing financial support.
According to a study by the Kauffman Foundation, 83% of entrepreneurs lack the necessary information to access sources of capital.
Caroline Nelson, Chief Operating Officer of CIC, highlighted the gap that this loan fund aims to fill.
“Our financial systems are really set up to focus on larger businesses,” Nelson said. “Your traditional banks are looking for businesses that have two to three years of operating history. It can be really hard to obtain a smaller loan amount.”
In addition to loans, the pair of organizations work with entrepreneurs on various aspects of running their business.