The micro lending sites are opening new lending markets, in peer to peer lending. They are building new ties between lenders and California micro-businesses, with the lender more of a business development partner than a passive lender.
Micro-lending for years has long been an economic development strategy of community training and economic development agencies in California. In the old days of micro-lending—that is pre-early 2000s—micro-lending consisted often of private foundations or wealthy private individuals providing funds for nonprofit intermediaries to disperse.
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