 TITLE: What Is Microlending? CONTENT: Microloan Funding Alternatives for Small Businesses\n---------------------------------------------------\nIf you need a small loan and are struggling to access credit from traditional sources, there are other options besides microloans you can consider.\n*   **Peer-to-peer lending**: Peer-to-peer (P2P) lending websites match individuals seeking money with individuals who have money to lend. To start the process, you'll complete a P2P loan application online and get preapproved. This typically results in a soft inquiry into your credit report, which won't affect your credit score. The P2P platform generates a loan offer and acts as an intermediary to handle the financial transactions between borrower and lender. Maximum loan amounts are generally around $50,000, but loans of $10,000 to $25,000 are more common. Popular P2P websites Prosper and Peerform offer personal loans; LendingClub also offers business loans of up to $500,000.\n*   **Other nonprofit organizations**: Nonprofits other than microlenders may offer financing, especially if you are a member of a group typically underrepresented in business, such as Indigenous peoples, women, people of color, LGBTQ people or military veterans. For example, the Mission Asset Fund, which assists people in low-income communities, offers 0% interest loans of up to $2,500 to start or expand a business.\n*   **Grants**: A grant is money you don't have to pay back. You can find grants through government agencies, community organizations and large corporations. Like microloans, many grants target business owners who can't access traditional business financing. Visit Grants.gov to learn more and search for grants.\n*   **Crowdfunding**: You can use a crowdfunding website to promote your business and ask for donations from individuals. GoFundMe, IndieGoGo and Kickstarter are popular crowdfunding sites. Keep in mind you'll have to give donors something of value, such as early access to your product, in return for their contributions.\nYour local SCORE or Small Business Development Center (SBDC) office may be able to direct you to other options for microfinancing in your community. END