No credit score cutoff, no collateral needed: Nonprofit lender making big changes to expand small-business loans on South and West sides

A nonprofit community lender is taking a new approach to small-business lending in Chicago: It will no longer consider credit scores or collateral in deciding whether an applicant should get a loan.

The decision to drop two standard lending metrics is part of an overall strategy change at Allies for Community Business, formerly known as Accion Chicago, which lends $500 to $100,000 to small businesses that struggle to get traditional bank financing.

https://www.chicagotribune.com/business/ct-biz-allies-for-community-business-accion-small-business-loans-20210129-l5k2qtdlljaefpd5j6av445v6e-story.html

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