The City of Cincinnati is giving $400,000 to a program that will help small businesses get loans they need to operate or expand.
The funding is going to an organization called SoMoLend. Founder and CEO Candace Klein said it’s a web-based platform.
"SoMoLend connects business borrowers seeking ways to fund their businesses with investors looking to make a return on investment," Klein said in a press release.
City economic development officials say SoMoLend is another item in the city’s tool box to help small business and create jobs in the city.
"Our partnership with SoMoLend provides an optimal way of sourcing good deals that lead to investment in small businesses and job creation in a comprehensive way," said Cincinnati Economic Development Director Otis Jones. "The City wants small businesses to prosper so the local economy prospers at all levels."
Klein said the average loan being requested is $157,000.
Klein said nationwide nearly $20 million small businesses are seeking funding and can’t get it.
She also said web-based lending has similar underwriting and default rates of traditional financial institutions.
