As I've mentioned in previous entries, about 95% of my work is with persons with disabilities who are trying to start their own businesses. These customers have already addressed the disability-related barriers to their employment by the time they've reached me, to any actual physical or mental impairments they may have are rarely an issue.
The consequences of having sustained a major injury or illness, however, can be a big challenge. The all-too-common story I hear is that a person was working and making a decent living when they became injured or ill. They subsequently were forced to run through their savings and usually damage their credit as they attempted to make ends meet while they recovered and worked to re-enter the workforce.
For people trying to start their own business, this is often a huge problem. Banks (who are already reluctant to loan money to small business start-ups) see a person with little or no cash or collateral and a poor credit rating and usually won't even consider loaning money to my customer so they can get the tools, inventory and services they need to start up their business.
The Michigan Employment Loan Fund (formerly the Michigan TeleWork Loan Fund) has been a terrific resource for many of my past customers. It's a loan fund specifically intended for persons with disabilities who are seeking self-employment and/or work-from-home arrangements. This fund is overseen by a committee that places more emphasis on the strength of a person's business plan and their character than lenders normally would, and less emphasis on their credit rating and collateral than lenders normally would.
Past customers of mine have used this loan to cover any gap between the money they have and can obtain through Michigan Rehabilitation Services (or the VA) and the actual start-up costs associated with their businesses. I've also seen them take out this type of loan for a smaller amount ($1,000-$2,000), knowing they could pay this back easily, just to use it to help improve their credit rating.
So: if you're a Michigander and a person with a disability who's seeking an additional funding source to start your own business or to purchase equipment that will aid in your getting (or retaining) other employment, definitely check the Michigan Employment Loan Fund out. It may be a useful option for you.
Have you had personal experience with the Michigan Employment Loan Fund? How did it work for you? Have you had personal experience with trying to obtain a traditional bank loan for your business? Were you successful? Do you have other similar funding sources that we can share with others via this blog?
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