Capitalizing Microenterprise Funds: The Virginia Enterprise Initiative
Vol. Volume 2, Number 1 June/1997
William Lewis Randolph
William Lewis Randolph is Professor of Finance at Norfolk State University. He wishes to thank the reviewers for their insightful comments and Francis Achampong for supervising the review process.
The Virginia Enterprise Initiative (VEI) is a state program established with the objective to help fund 15 microenterprise loan programs beginning in 1995. An important aspect of the VEI program is the use of leverage. A relatively small amount of state funds is used to attract a much larger amount of funds available from the Federal government, commercial banks and other sources. The program was successful in using leverage and attracted $4.7 million in matching funds to support the programs that received state grants. The major sources of these funds were the Federal government ($2.6 million) and commercial banks ($1.4 million). This paper examines the sources of the matching funds and the degree of leverage achieved by this Department of order to analyze the sources of funding available for start up microloan programs during this period.
Microenterprise loan programs, microloan funds in Virginia, capitalizing microloan funds.