Special to The American
Devoted to helping refugees adjust to life in America, the International Institute used a United Way $5,000 grant to give immigrant and refugee women small business loans. According to Julie Mauchenheimer, microenterprise program manager at International Institute, there is a need in the St. Louis community for women to secure loans for their businesses.
“We noticed that there was a need for financing for really small business that didn’t have much of an established credit history,” she said. “Or their credit would be seen as risky to other lenders.”
After an initial background check where the Institute looks at a person’s character and income from employment and revenue from their business (if it is already active). If someone is approved, they receive a $1,000 loan, with no interest, to be paid in full at the end of 12 months.
So far, two women have completed the program and paid back their loan.
“Two people have paid back the loan, and currently three women are in the program,” Mauchenheimer said.
“There is more interest in the program, though.” And there is a need.
“Traditional lenders look at a credit score and type of business and find out if it’s a start up or an existing business,” Mauchenheimer said.
“And depending on those things, they’ll say no to people very early on. People don’t even have a chance to try. They can’t even get their foot in the door. Here, they have a chance.”
Most of the women use the money for business repairs orto enhance their communication abilities. A few of the women are vendors and sell to people in their community.
Some provide sewing and alterations services, and one woman runs a home daycare.
The loans give them a chance to increase their profits and boost their credit. They also attend group meetings to set goals, compare experiences and offer support to one another.
“We talk about their obstacles and we brainstorm ideas about how to improve their business,” Mauchenheimer said. “Last week we talked about record keeping and soon we’ll talk about marketing.”
The loan program is a stepping stone for immigrant and refugee women in the local community. They’re able to improve their credit so they can be approved for a larger bank loan in the future..
“We wouldn’t have the loan program without the United Way initial grant,” Mauchenheimer said.
“And it’s really important to help the people who are least likely to get credit. We can give them a start. We can give them a beginning.”