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Home / Biz Blog / Lawmaker hopes to spark job creation with private loan fund for startups (access required)

Lawmaker hopes to spark job creation with private loan fund for startups (access required)

A Boise lawmaker is calling for the state to set up a private fund that could make loans of up to $35,000 to startup companies and other growing businesses in Idaho, a move that he says could trigger some badly needed job growth. Rep. Branden Durst, D-Boise, has been drawing up a bill that would create ...

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30 comments

  1. It is actually a nice and useful piece of info. I am happy that you simply shared this helpful info with us. Please keep us informed like this. Thanks for sharing. cheap affordable car insurance

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  3. Although not statewide, there is already a local nonprofit microenterprise agency (META, //www.metaidaho.org) that provides microloans in addition to confidential consulting, monthly workshops, and business plan training to disadvantaged entrepreneurs in the greater Boise area. I started this program over seven years ago and would love to collaborate with Rep. Durst.

  4. High Finance is Sexy

    I think something is missing from the debate above. The corporate body politic floats bonds. Secondary debt markets buy the bonds. So banks per se aren’t loaning these businesses the money, correct? Banks may underwrite the bond, but they’ll then sell them off, right? But since these businesses are higher risk enterprises than the larger businesses with more collateral (if they weren’t then banks would be lining up to loan their money to them) the debt markets will expect a higher interest rate on the bonds, correct? So this will still be pricey financing, but clearly better than credit cards. Somebody who understands bonding authorities please clarify who is loaning who money and how much state sales tax revenue is at risk if we try it.

  5. Thanks for the interest! Blake, I need to correct you. The whole point of the program is to get money to small businesses that otherwise wouldn’t get loans. I am assuming you’ve never seen a draft of the bill, so I can understand how you may be under that misconception. It states pretty clearly that the legislative intent of the legislation is to fill the void that you are talking about. If it weren’t, I’d just be creating a new competitor for banks and credit unions. That’s not my goal. Let me know if you have other comments or questions!

  6. Nate (#2). No, you wouldn’t use this type of loan because no bank will issue you the credit–whether this program exists or not. It’s not because there’s something wrong with you, it’s because banks aren’t issuing credit…even to credit-worthy businesses.
    The Durst plan will not solve that problem. It will just be more effort wasted on a poorly conceived feel good plan.

  7. I am glad to see that our elected officials are pursuing other avenues, or ideas to help in the economic recovery. Unlike the previuos commenter, I personally think that the \MicroLoan\ program is a great idea. These loans have been used all over the world for about 20 years. I personally would have applied for this type of loan, instead of struggling for a few years in my own business! I know people who have used \Hard Money\ loans to start a business, that is real desperation.

  8. if it’s like the IHFA, this idea is yet another program whose success ultimately depends on banks lending money…. that’s why the IHFA funds aren’t more widely applied–sooner or later a bank has to issue credit. And right now they are only issuing credit to business and projects that wouldn’t use this $35k non-dischargeable micro-loan plan.

    I fear the Hon. Rep Durst doesn’t understand lending or finance.