PITTSBURGH, PA (April 10, 2018) A micro loan program supported by Mayor William Peduto for small businesses and entrepreneurs is set to go before the board of the Urban Redevelopment Authority on Thursday.
The Micro-Enterprise Loan Program would offer loans of $5,000 to $20,000 to businesses citywide to help cover costs of machinery and equipment, working capital, and leasehold improvement, including façade renovations. The loans will have 2% interest, cover up to 90% of project costs, and come with technical assistance to businesses.
The program will assist small businesses whose needs are not met by traditional sources of start-up capital, and follows the p4 development model advocated by Mayor Peduto, which focuses on people, planet, place and performance.
The Mayor announced the micro loan program at the launch of Inclusive Innovation Week April 2.
"This program will strengthen the URA's ability to spread opportunity throughout the city of Pittsburgh, especially to minority and women business owners who have not always had ready access to capital," the Mayor said.
The pilot program will be administered by the URA's Center for Innovation and Entrepreneurship and other URA staff with the assistance of 3rd party advisory committees to provide financial underwriting guidance and technical assistance to borrowers.