Title
Entrepreneurial Micro-Credit Program (B)
This is a request for the General Policy Committee to review a proposed Entrepreneurial Micro-Credit Program.
Explanation
As part of the City’s FY ’18 budget, a small business loan seed money fund was established in the amount of $80,000. For the past several months, staff has been meeting with stakeholders interested in the implementation of this program and staff would like to introduce a preliminary structure for the Commission’s consideration.
Access to capital has always been a challenge in the entrepreneurial community, especially for those coming from adverse economic backgrounds. Gaps exist in achieving the needed means to get a proposition from concept to actual production and ultimately revenue generation.
The State of Florida has recognized this challenge and has addressed the implementation of micro-finance programs in State Statute (Chapter 288, 288.993-288.9937) and provided funding for these efforts as well.
Locally, the University of Florida’s Entrepreneurship & Innovation Center has instituted a program, the Gainesville Entrepreneurship and Adversity Program (GEAP) that is designed to help empower those who currently find themselves in adverse circumstances to achieve a means of making a living through the creation and development of their own businesses.
The core goal of this program is to empower those who are economically disadvantaged and to alleviate poverty in the Gainesville community. This core goal is aligned with the City’s strategic initiative regarding support for a strong economy emphasizing job diversity, entrepreneurship and small business vitality.
In addition, this core goal is ubiquitous in that it is the mission of other stakeholders interested in achieving these outcomes for their constituencies in various segments of the local economy.
Analysis for Consideration
There are different approaches to the structure of a Micro-Lending program and several model...
Click here for full text