SAN ANTONIO– LiftFund – the nation’s largest nonprofit small business microlender, announces an exciting new partnership with Lendoor, a crowdfunding firm. Lendoor is an online crowdlending platform for business loans, helping start-ups and small businesses get funded. Through a collective group of friends, customers and supporters, entrepreneurs are able to get access to capital facilitated by Lendoor. The goal for the partnership is to launch a pilot program which will allow LiftFund to lend additional capital to small businesses that successfully crowdfund at least $10,000 on Lendoor. Together, the two organizations will enable small businesses to borrow up to 50 percent more funds than what they can raise from their own network.
The program makes it easier for entrepreneurs and small businesses to take advantage of the new Texas Intrastate Crowdfunding laws, which passed in November 2014. This law allows companies to raise funds online from friends, family, customers or community as debt.
“As an organization with deep roots in lending to local businesses without access to conventional sources of capital, the new crowdfunding space is an important part of thespectrum of capital entrepreneurs can tap into,” said President and CEO of LiftFund Janie Barrera. “Both Lendoor and LiftFund strive to support entrepreneurs and small business with capital, credit building and asset building.”
Pilot Crowdfunding Program
To qualify, business owners must be current with all personal and business bills for the previous six consecutive months. An entrepreneur that can crowdfund at least $10,000 on Lendoor will automatically have the option of borrowing another $5,000 from Liftfund. Both startups and established companies are eligible for the program. Additionally, there is no minimal credit score required to obtain a loan.
Eligible business owners must have prior experience in the industry. They must have a personal investment of at least 10 percent, along with a business plan. Business owners are required to be able to cover personal expenses for at least six months.
To crowdfund a loan you need a cash generating business that needs fund for expansion. The company must also be registered with the Texas Secretary of State and meet the additional requirements of Texas State securities Board to be eligible for crowdfunding.
“This is a very exciting time, as more companies find out about the new crowdfunding rules, and come to realize they have other options besides the traditional lenders,” CEO of Lendoor Viktoria Kane said. “Just as crowdfunding has become a major force in funding products and projects at kickstarter and Indiegogo, “crowdlending” has huge potential to fund businesses with strong social and community networks.”
With support from Lendoor, more entrepreneurs in Texas and the Mid-South have an opportunity to learn about the services that LiftFund offers. Liftfund offers small business loans from $500 to $250,000, and specializes in serving entrepreneurs who have limited access to capital. LiftFund also offers a wide variety of business education programs.
Lendoor is a crowdlending platform for business loans. Lendoor helps start-ups and small businesses nationwide get crowdfunded loans from friends, customers and supporters. To learn more about Lendoor visit, texas.lendoor.com
Established in 1994 in San Antonio, as Accion Texas Inc., LiftFund is a financial and business-support service organization that helps entrepreneurs strengthen their businesses, stabilize and increase their incomes, create employment and contribute to the economic revitalization of their communities. LiftFund has the nation’s largest microlender portfolio and is committed to providing capital to entrepreneurs who do not have access to loans from commercial sources. Since its inception, LiftFund has made over 16,000 loans totaling more than $190 million. LiftFund operates in eight states – Alabama, Arkansas, Kentucky, Louisiana, Mississippi, Missouri, Tennessee and Texas. To learn more about LiftFund, go to liftfundstage.wpengine.com .