Timely Decision

Women business owners looking for capital but afraid of being rejected by banks got a boost last year when the Small Business Administration's Women's Prequalification Pilot Loan Program went national (see "Entrepreneurial Woman," February). Nonetheless, some women worried that because local SBA offices were given the choice of whether or not to adopt the program, it might not come to their area. The concerns of many may be over; the SBA recently reported that 50 offices nationwide have picked up the program.

Under the Prequalification Program, nonprofit intermediaries help applicants develop business plans and loan packages, then submit them to the SBA. If the SBA finds the borrower is qualified, it issues a prequalification guarantee letter the loan applicant can then take to banks. For more information on how to apply, contact your local SBA field office or call (800) 8-ASK-SBA.

Contact Sources

Sen. John Ashcroft, 316 Hart Senate Bldg., Washington, DC 20510, john_ ashcroft@ashcroft.senate.gov

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This article was originally published in the July 1997 print edition of Entrepreneur with the headline: Timely Decision.