Entrep Training/Tec Assistance

[DRizzo2327 at aol.com]

Jason Friedman's comments regarding being all to everyone are on target. I
have to remind him, though, that having access to a loan los reserve
(guarantee) fund is a big help in getting a bank toparticipate. We are
revising our approach in NJ to make greater use of guarantees rather than
direct loans; mostly because of discussion with Jason and others (P. Lind) in
Iowa.

My biggest problem in being a lender (of sorts) is convincing my conservative
and banking based board members that lender's liability is not an issue in
micro-lending and in unchartered lending services. Any comments on this
would be appreciated.

Dennis Rizzo, Acting Director
Disability Enterprise Program
NJ Community Loan Fund, Inc.
DCRiz@aol.com

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[johnl at shadow.net]

Dennis Rizzo wrote:

>My biggest problem in being a lender (of sorts) is convincing my
>conservative and banking based board members that lender's liability is
>not an issue in micro-lending and in unchartered lending services. Any
>comments on this would be appreciated.

Its not a problem until you bring a lawsuit to try and collect on a
defaulted loan. If you (the lender) tried to influence too many business
decisions of the borrower, the borrower may claim that the failure of the
business was partially the lender's fault.

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John Little (johnl@shadow.net)
The Community-based Economic Development "Hyper-Text Resource Center"
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Practical venture development tools for community controlled corporations
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