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The small business loan program may be a key to the success of the SBEDIF project. Access to capital (start-up, expansion, and operating) is a major barrier to small business development in Ukraine in general and Ivano-Frankivsk specifically. While some banks are supportive of small business, many are not prepared to risk financing small business. Loans are granted at extremely high interest rates and only on short-term repayment schedules. The SBEDIF small business loan program would provide the needed catalyst for all the other program initiatives in providing direct financing to help individuals normally not eligible for normal financing to help realize their business ventures. The importance for entrepreneurship skills will be even more evident to SBEDIF clients who hope to qualify for loans from this program. The small bank loan program with its rigid process for preparing entrepreneurs for business loans will not only lead to more business start-ups but will decrease the potential for business failure rates. Training of SBEDIF staff in loan procedures and business plan assessment (skills that are lacking in the financial community as a whole) is critical to this program. |
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Last updates were made 19-08-99 Copyright |
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