Sam Adams' microloans assist small hospitality companies

10/26/2011

According to data from the Federal Reserve, the volume of industry and commercial loans has increased by 6.2 percent since the beginning of the fiscal year, but the majority of those funds were distributed to mid-sized companies, the Wall Street Journal reports.

Boston Beer Company founder Jim Koch is attempting to assist these neglected smaller companies with his Samuel Adams Brewing the American Dream program - named after the company's most well-known beer.

The program offers microloans to small businesses, and so far has issued around $825,000 to nearly 100 companies in the northeast since its inception three years ago. The loans typically range from $500 to $20,000.

"A few years ago there was nobody offering those kinds of loans," Koch told the news source. "Small businesses looking for $25,000 had nowhere to go."

According to NPR, Koch is expanding his program to include small businesses in Chicago, where he hopes to salvage more low- to moderate{-}income companies in the food, beverage and hospitality industry.

Koch notes that one of the program's more memorable loans was to the founder of Cambridge-based Voltage Coffee. A $3,000 payment for an espresso machine turned into a business that employs 20 people and recently received a $150,000 investment from a venture capital firm.