If you’ve been having a hard time getting cold, hard cash to support your business, we’ve got some exciting news for you.
AltCap has partnered with Access Ventures to bring the first character-based microloan to the KC Metro area: The Kansas City Growth Loan.
This is huge … but why? Right?
Let’s get a bit of reference first. AltCap is a community development financial institution, or CDFI, that invests in underestimated communities throughout the Kansas City metro.
It provides capital through innovative financing products, targeted small business and economic development programming and partnerships that help build an inclusive ecosystem of entrepreneurship. It’s also one of the more than 240 Resource Partners that KCSourceLink connects entrepreneurs with to build small businesses.
> > > Looking for funding? Need help with finances? Or just have that pesky hurdle your business can’t clear? Let us know what you need here or give us a call at 816-235-6500, and we’ll outline your next steps (for free).
According to research by the Kauffman Foundation, about 4 in 5 entrepreneurs lack access to a traditional bank loan or venture capital and require some type of alternative capital to launch or grow their business.
AltCap has worked to address this issue in Kansas City by providing microloans to entrepreneurs underserved and overlooked by mainstream financial institutions — originating nearly $2.5 million in microloans since 2015 with an average loan size of $26,000 and a default rate of less than 1 percent.
Microloans still have requirements, and unfortunately, some of those have limited access for some entrepreneurs. This is why the Kansas City Growth Loan is intriguing.
Using an unconventional underwriting process, the business owner's reputation becomes the collateral, and his or her potential replaces a credit score, helping business owners realize their company’s full potential.
"We are thrilled to bring this innovative loan product to the Kansas City market," said Ruben Alonso III, president of AltCap. "The Growth Loan will remove additional hurdles for small business owners seeking to grow and thrive in our community by creating access to capital that will help build an equitable, entrepreneurial ecosystem.”
If the Kansas City Growth Loan isn’t the right funding option for you, reach out to us here at KCSourceLink
so we can help you find the funding that’s the perfect fit.