Micro-lending at Metro State

Thanks to $25K donation

Gene Davis, DDN Staff Writer

Thursday, July 9, 2009

A loan program that has been successful within developing countries is being made available for college students in Denver.

Thanks to a $25,000 anonymous donation, the Center for Innovation at the Metropolitan State College of Denver is teaming up with the Rocky Mountain MicroFinance Institute (RMMFI) to provide a micro-lending program for burgeoning entrepreneurs. Micro-lending provides small loans for people starting or building a business.

“With our vision of being an urban land institution, we’re about creating opportunities so that people can succeed,” said a statement from Mick Jackowski, director of the Center for Innovation. “We’re about creating opportunities for underserved entrepreneurs that show us viable business plans. We want to help you get it off the ground.”

According to CBS News, micro-lending in 2008 totaled $36 billion and went to over 99 million borrowers. Many of those borrowers were in the poorest areas in the world.

Micro-lending has become a new trend among higher-education institutions, according to Jackowski. The program allows educational facilities to provide financing for community and student start-ups.

Alex Shipillo, who runs the Impact Entrepreneurship Group, said micro-lending is a great way to encourage entrepreneurship.

“I think it’s really important because this is the first recession that we’re facing in our generation and the most successful companies are the ones that are the most entrepreneurial,” he said. “I think that’s why we’re seeing in the last year or so a huge rise of people who are starting their own ventures, and I think that teaching that as young as possible is important.”

The loans from the Center for Innovation and RMMFI will range from $250-$1,000 and be distributed once a quarter. The loans will be for six months and have 9-percent interest rate.

“It’s important for entrepreneurs to understand that they can accomplish a lot with small amounts of capital,” said Jackowki

The first loan is set to go out Jan. 2010. To become eligible for the loan, a person must take any combination of three classes from an approved list of business development courses offered by the Center for Innovation or RMMFI.

Rob Smith, RMMFI’s executive director, said the loans are a great opportunity for the Denver community.

“Through the cross-promotion of our programs and access to the new loan fund, Denver will see positive impacts on credit scores, new business startups and ultimate business success,’ he said in a statement.

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