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Los Angeles area entrepreneurs are finding a way to "open for business" with the help of small SBA loans, underwritten by a unique program spearheaded by Innovative Bank (IB). This plucky little financial institution recently acquired the Bank of Oakland and then proceeded to carve out a niche in the $5,000 SBA Loan marketplace, using Nevada as a testing ground. Now IB has entered Los Angeles and in a dramatic fashion and is focused on Minority Business Enterprise and its limitless number of small office home office based businesses. Thus, evolved the acronym for IB's product--SOHO. Recently, IB has increased its lending policy and has added $10,000 and $15,000 loans to its lending arsenal to satisfy a growing demand for micro-business working capital.

IB's novel program employs community intermediaries to host loan application workshops, during which the application is completed. The intermediary also reviews poignant information that may accompany the application. Usually within a week to 10 days of receipt of the application by the bank, the intermediary will be able to apprise the applicant of acceptance or whether additional work is necessary to proceed. Loan funding often follows several days after approval by the bank and acceptance by the prospective borrower.

Los Angeles SBA Director Alberto G. Alvarado welcomes the advent of this SOHO SBA loan product as an economic development tool for his tri-county service area. "Innovative Bank has devised an approach which has allowed loan aspirants to "get into business" with little or virtually no cash outlay. It is a true 'open door policy' for which we are grateful to the bank," mused Director Alvarado.

The North LA SBDC, hosted by Valley Economic Development Center, is one of the inaugural intermediaries and has within the last three months generated more than four dozen of these SOHO loans. The strongest contributor to this SBDC's small loan production success is Marlen Bello, a Business Development Officer (BDO) for North LA SBDC.

# posted by Medical Information : 5:27 AM