Apr 29, 2007

Microloans getting macro effectBy Thomas LeeBradenton.com

Minneapolis — Ana Chacon had a big decision to make.

The 51-year-old immigrant from El Salvador successfully operates two Hispanic-themed gift shops in Minneapolis. But her kiosk at Rosedale Center in Roseville, Minn., which she opened last month, wasn’t faring as well, and Chacon had to decide whether to pull out.

“The acceptance was not as I expected,” Chacon said through a translator about the jewelry, colorful handbags, handcrafted crosses and other goods at the kiosk.

Fortunately for Chacon, she could bounce her thoughts off Natalia Pretelt, a loan specialist with the Minneapolis Consortium of Community Developers, and Monica Romero, a business developer with the Latino Economic Development Center. Both women not only helped Chacon secure the $5,000 loan to open the kiosk but also have provided much-needed advice in running her business. Chacon doesn’t have any employees; her husband and son help, and the stores have about $75,000 annually in sales.

Chances are that Chacon, who arrived in the United States nine years ago, would not have qualified for a loan from a traditional bank to even start a business, never mind expand one.

But thanks to a small but growing network of banks and nonprofit groups that specialize in microlending, entrepreneurial immigrants like Chacon are gaining access to precious capital.

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