There’s a New Character-Based MicroLoan in Town

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 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 541+ Resource Partners that MOSourceLink connects entrepreneurs with to help build their businesses.

According to research by the Kauffman Foundation, 81% of 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.

There are still requirements with a microloan and unfortunately some of those have prevented access for entrepreneurs out there. This is why the Kansas City Growth Loan is such a big deal.

Using an unconventional underwriting process, the business owner’s reputation becomes the collateral and their potential replaces their credit score, helping business owners to 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.”

“There are a lot of small business owners out there who appear to be unqualified based on traditional underwriting methods who actually are able to repay what is owed. Not just able, but more than willing to repay the organization that finally said “yes,” said David Taliaferro, principal at Access Ventures, “We’ve been lending to underestimated small business owners such as these for the past five years in Louisville, Kentucky, and are excited to be working with AltCap to create the same opportunity in Kansas City.”

Cheers to AltCap for making an exciting move toward more funding accessibility for entrepreneurs. If the Kansas City Growth Loan is not the one for you, feel free to reach out to us so we can help you find the funding that’s the perfect fit.