Delta region businesses to benefit from partnership

10/20/2011

A partnership between nonprofit micro-lending organization Accion, the Delta Regional Authority and the Small Business Administration has resulted in a project to make small business loans available to entrepreneurs in the Mississippi Delta region, Arkansas News reports.

The Delta Accion project will provide credit and service to entrepreneurs who don't have access to loans from commercial lending sources. The Republic notes that the initiative is expected to provide $1.2 million in loans annually - up to $50,000 for startups and $250,000 for established enterprises.

"It's a real win for the Delta's small businesses and entrepreneurs," said DRA chairman Chris Masingill, as quoted by Arkansas News. "For far too long, entrepreneurs and small businesses have been shut out from access to capital."

The partnership came to light following a DRA report released earlier this year that showed many Delta-area communities were having difficulty gaining access to capital. Masingill adds that the Delta region is a particularly "capital-starved" part of the country.

He hopes that this agreement will serve as a viable replacement for payday lenders. While the quick-cash stores are no longer authorized to operate in Arkansas, payday lending is still prevalent in other Delta states.