Using Micro Loans To Fund Your Home Business

The economic downturn has touched everyone, and many would-be entrepreneurs are finding that getting a regular business loan has become nearly impossible. That doesn't have to mean that you're out of options. If you're having difficulty finding a suitable loan for your startup, you may want to consider a micro loan.
What Is A Micro Loan?
Micro lending started out as a way to provide support to poverty stricken individuals who had no way of proving their ability to repay. Through charitable investments, these impoverished people were then able to finance their small business and begin to build income and wealth on their own. Often, a very high interest rate is charged because of the difficulty of servicing such small loans, but for people who have no other option it can seem like a Godsend.
The success of these micro lending projects has led to its use in more mainstream activities like home business startups with a risky business plan or stay at home moms with little credit and no collateral. While micro loans usually mean tiny amounts when they're used abroad (we're talking around $100 on average), things are a little different in the U.S. Generally, banks don't offer loans smaller than $50,000 for small businesses, but with micro lending most are between $1,000 and $15,000. Of course, this varies from lender to lender