VIDEO: Stories from the new economy: Detroit Micro-Enterprise Fund

Since the economic crisis of 2008, banks have been hesitant to make loans to startups and small businesses. Entrepreneurs often launch startups with combinations of their own cash and investments from friends and relatives, but additional capital is needed to keep their businesses growing. Yet obtaining traditional financing is the major obstacle faced by many entrepreneurs who are poised to grow their businesses and create jobs.

The Detroit Micro-Enterprise Fund helps small businesses in Detroit obtain financing unavailable to them from traditional banks. Detroit Micro-Enterprise Fund is concerned more about the character and personality of their borrowers and the strength of their ideas than their credit score—and they’ve enjoyed a 97 percent success rate so far in the repayment of their loans.

Detroit Micro-Enterprise Fund’s loans, which range between $10,000 and $50,000, fill a gap in the lending market and help local startups build the track record they will need to get larger loans as they grow.

Read more at New Economy Initiative.