New York biodiesel producers turn to micro-credit
In New York state, biodiesel companies are turning towards micro-credit programs to help them get through the tough times as most commercial banks are still risk averse. Designed to serve startup, newly established and growing small businesses, microloans are short-term loans with a ceiling of $50,000, an increase from $35,000 found in the original Recovery Act provision prior to the Small Business Jobs Act of 2010 US President Barack Obama signed in September.
The funds can be used as working capital to pay employees, purchase new equipment and supplies, and rehire staff and for small-scale biodiesel producers, they can obtain immediate funding to supplement other capital sources, or to expand businesses, especially during a time when the $1 per gallon federal blender tax credit is expired.
Category: Fuels
