Boston Beer Company Starts Microloan Fund To Assist Small Businesses
Written by Ken Gaebler
James Koch, founder and president of the Boston Beer Company, is using microloans to boost small business activity in the Northeast.
As small business finance news continues to report the sector's struggle to attain financing, many owners are turning to more creative means such as microloans.
In fact, businesses in the Boston area are benefiting from the Boston Beer Company's Samuel Adams Brewing the American Dream Loan Fund that gawards loans from $500 to $25,000 to low- and moderate-income businesses.
James Koch, founder and president of the Boston Beer Company, told the Herald News that he came up with idea after he and his employees participated in a community service day in south Boston. Koch approached nonprofit microloan provider ACCION to start the fund.
"The cost of administering small loans, for a bank, is too high," Koch said. "We were looking for a way to give back in a meaningful way."
Microloans have become an increasingly popular source of funding for small businesses during the recession. In fact, Grameen Bank, which has traditionally offered loans to individuals in developing countries, launched Grameen America to help struggling U.S. businesses.
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