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Chamber's microloan program swells to $2M after grant

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A microloan program for small businesses in Indianapolis has received a torrent of funding from the JPMorgan Chase Foundation—boosting the fund from $155,000 last fall to $2 million.

Business Ownership Initiative, a unit of the Indy Chamber, launched its microloan fund last September to help small business owners in Indianapolis. It has relied on grants from the Glick Fund, the Indiana Housing and Community Development Authority, and from the city.

“This new funding source for our microloan program can help us extend our reach even further,” BOI’s executive director, Julie Grice, said in a prepared statement.

The partnership with BOI and Chase expands the project beyond the core of Indianapolis and likely will reach businesses in untapped neighborhoods, said Dennis Bassett, chairman of Chase Indiana.

With the Chase funding, Indy Chamber now has the largest microloan plan in the country, officials said. Businesses must meet with a business coach to assist them in the loan application.

Microloan programs have been popular for years in developing countries, which don’t have traditional banking infrastructure. 

But the financial crisis of 2008 crimped funding to U.S. small businesses and sparked interest in microlending. Traditional lenders typically prefer working with more established borrowers looking for bigger loans that are more profitable and sometimes less risky to the lender.

There are other microloan programs in the state, including one run through the Anderson-based Flagship Enterprise Center, which is tied to the U.S. Small Business Administration’s Microloan Program.

Flagship made 17 microloans in 2012.

Even some cities are getting into the act. Zionsville has a microloan program available to existing businesses in its tax-increment financing district. The program is seeded with TIF proceeds.

Most microlenders make loans in the range from $500 to $50,000, though the national average is $13,000.

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  1. The deductible is entirely paid by the POWER account. No one ever has to contribute more than $25/month into the POWER account and it is often less. The only cost not paid out of the POWER account is the ER copay ($8-25) for non-emergent use of the ER. And under HIP 2.0, if a member calls the toll-free, 24 hour nurse line, and the nurse tells them to go to the ER, the copay is waived. It's also waived if the member is admitted to the hospital. Honestly, although it is certainly not "free" - I think Indiana has created a decent plan for the currently uninsured. Also consider that if a member obtains preventive care, she can lower her monthly contribution for the next year. Non-profits may pay up to 75% of the contribution on behalf of the member, and the member's employer may pay up to 50% of the contribution.

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  3. So, how much did either of YOU contribute? HGH Thank you Mr. Ozdemir for your investments in this city and your contribution to the arts.

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