Small Business and Economic Development Lending
How do small businesses thrive in Rural America?
As the country undergoes continual change, LISC’s focus on equitable economic development is a response to that question. The economy should grow to embrace long-term residents who have yet to benefit and lower income people who might not be connected to opportunities. Our work creates opportunities for people to find jobs that increase their income and assets; it also grows businesses and rebuilds rural economies. With our resources — lending, technical assistance, and grantmaking — we help build a local ecosystem that creates more equitable economic opportunities and outcomes for rural small businesses.
Across rural America, a racial equity lens in economic development is critical, and so we aim to use our resources to help low-income entrepreneurs, primarily black and brown residents, immigrants, and others at risk of being left behind, to find and maintain their place in Rural America. We utilize three strategies to support equitable economic growth:
Transform Places:Communities rich with opportunity and physical assets are a prerequisite for healthy, happy lives and a strong society. We work with partners to support vital local economies and safe, affordable places to live, work and go to school. This takes many forms, including preservation and construction of affordable housing, commercial and industrial district development, creative placemaking, transit-oriented development, sustainable building and disaster resiliency
Build Organizational & Ecosystem Capacity: Rural LISC works to identify and eliminate disadvantages that have nothing to do with an entrepreneur’s grit and talent and everything to do with unequal access to what makes up a small business ecosystem: the network of capital, services, and supports that every enterprise needs to get on its feet and grow. These ecosystems are critical to fostering opportunity and long-term resiliency for all entrepreneurs who confront entrenched inequities, including people of color, women, immigrants and refugees, and people with lower incomes and wealth.
Drive Systems Transformation:LISC Rural drives change by working through our embedded local relationships to align capital, capacity and community visions. We advance community driven solutions to effect policy change, and address the root causes of economic and racial inequities.
Our financial products include:
Kiva Crowdfunded Loans: Rural LISC partners with Kiva, an international nonprofit with a mission to expand financial access to help underserved communities thrive. This online crowdfunding platform connects entrepreneurs with customers, community, and capital. Loan sizes range from $0 to $15,000 and are made at a 0% interest rate to both start-up and existing businesses. The proceeds can be used for working capital, equipment and inventory. Read more.
Commercial Real Estate Loans: LISC provides acquisition and construction loans for commercial and mixed-use projects. Loan amounts range from $500,000 - $5,000,000.
LISC Economic Development Loans: LISC offers Accelerated Business Loans, Permanent Working Capital Loans and Leasehold Improvement/FF&E Loans to existing businesses within LISC communities. Loan amounts range from $25,000 to $500,000.
Makerspace Loans: LISC provides commercial property acquisition and construction loans to multi-tenant makerspaces. Loan amounts range from $500,000 - $3,000,000. LISC considers a makerspace an adaptive reuse of old industrial buildings, warehouses and large commercial spaces to a multi-tenant facility. The spaces are characterized by small commercial rental units, short term leases, common areas and shared equipment typically used for business incubation, light/artisanal manufacturing and technology businesses.