A new partnership between Morgan State University and a nonprofit lender aims to help small businesses get the loans they need to grow.
ECDC Enterprise Development Group, a nonprofit based in Arlington, Va., has started making monthly visits to Morgan’s Entrepreneurial Development and Assistance Center to meet with small-business owners about ECDC’s micro-lending program.
ECDC offers loans of between $500 and $50,000. The average loan is between $15,000 and $20,000, said Kevin Kelly, ECDC’s executive director.
Banks often are not interested in making such small loans, Kelly said. That makes it hard for small companies to get the capital they need to launch a new product, or buy a key piece of equipment. The nonprofit also makes larger loans guaranteed by the U.S. Small Business Administration of between $50,000 and $250,000.