Micro loans on rise in Portland area

Tougher bank lending rules are driving an increasing number of small-businesses owners in the metro area to a form of credit more typical of the developing world — the micro loan.

Such loans, which can be as little as $500, can be a lifeline for low-income entrepreneurs who otherwise wouldn’t qualify for bank financing. But they carry much higher interest rates and have requirements — such as mandatory business courses — a bank wouldn’t demand.

"The world has changed, banks are tightening down and micro loans are becoming a real option for people," said Mark Green, a principal with the Family Business Consulting Group in Salem. "People need money and will do what they have to get it."

by Jonathan Brinckman, The Oregonian

Full Story: http://www.oregonlive.com/business/index.ssf/2009/02/micro_loans_on_rise_in_portlan.html