Microenterprise and the small-dollar loan market

Hoy, Tammie; Romero, Jessica Sackett; Zeuli, Kimberly

Briefing

Microenterprise and the small-dollar loan market

Abstract: "Small business" is a designation that includes businesses of many different sizes with varying financial needs and access to credit. Microenterprises ? businesses with fewer than five employees ? are served primarily by the small-dollar loan market, which ranges from payday lending to microloans offered by nonprofit organizations and, to a lesser extent, loans from traditional financial institutions. This Economic Brief explores the need for and challenges facing the small-dollar loan market in the United States.

Keywords: Financial institutions; Credit; Community development; Small business;