"At the Rutledge Insurance Agency we have had the opportunity to experience growth and success because of the assistance received through the WECO Microloan Center. The loan and advice we obtained enabled us to enjoy double digit increases in revenue and helped provide a foundation for the recent opening of a second office location."
Deborah and Darwin
Rutledge
Rutledge Insurance
WMC Clients
Microenterprise is an income-generating strategy that allows individuals with limited access to capital the opportunity to start or expand a small business. A microenterprise is a business that has five employees or less and can be capitalized with $500 to $35,000. The owner must be directly involved with the business, and often is the sole operator and worker. In general, microenterprises do not meet the credit and/or collateral requirements necessary to access traditional financial services. WECO's microenterprise clients offer services that range from landscaping to pet day care, and products ranging from specialty foods to designer jewelry.
Currently the success rate of WMC loans is 93%. This number is high because of the quality and quantity of post-loan technical assistance that is provided by the Center's talented and committed staff. Clients are visited or contacted monthly to assess challenges and offer appropriate assistance. The goal of the Center is to do whatever it takes to help the entrepreneur's business succeed, and to enable him or her to qualify for traditional financing when the time comes.
The general loan fund, currently 1.5 million dollars, comes from the U.S. Small Business Administration, The Ohio Department of Development, KeyBank, Fifth Third Bank, Huntington Bank, National City Bank and local governments. While interest rates may be slightly higher than average, the loans are considered higher risk. A volunteer Loan Committee, made up of local bankers and business people, meets monthly with applicants and makes decisions about the loans.
Since its inception in 2002, the WECO Microenterprise Center has offered a variety of services to those looking to start or expand a small business in Cuyahoga County:
- Outreach to educate microentrepreneurs about WECO's programs
- Referrals to more extensive small business skill development and training programs offered by other community organizations
- Business plan development assistance through classroom training and individual coaching
- Loan packaging workshops to explain WECO's loan application process in detail
- Coaching on presentation of a business plan to the WECO Loan Committee
- Assessment of the entrepreneur's potential success and challenges
- Access to loans of $500 - $35,000
- Individualized technical assistance and support throughout the life of the loan
- Access to WECO's IDA and Financial Planning Programs
Additional Links:
The WMC partners with financial institutions and other organizations to develop customized loan programs that target specific neighborhoods or populations.
For information on the WECO Microenterprise Center, call
216-458-0250