Step In

STEP IN—the first step—is where an idea is articulated, a small loan is made and the idea gives birth to a small business.  An entrepreneur is born!  This step provides capital, returns profits, builds savings, and culminates within one year.  As part of the process, the business owner will be mentored by volunteers who will provide motivation, serve as a resource and encourage success.

The STEP IN process is critical to the success of the Bootstrap America program.  In this phase, several elements are intentionally linked to provide a strategic path toward success.

One element is the use of volunteer mentors to come along side to help provide accountability, encouragement and motivation for the business owners.  This mentoring process will help ensure that borrowed funds are used for the stated purpose and that scheduled loan payments are made.  For more information, click on MENTORS.

The next element in this phase is the business plan.  The business owner is required to create a simple business plan.  Simple means just that—simple!  The plan may consist of a few sentences stating the amount of money requested, what business the money will fund, and how the business will generate profit to repay the loan.  One example might be: “I am requesting a $600 loan to buy a sewing machine, fabric and sewing supplies.  I will use these materials to make children’s clothes.  I will sell the clothes to neighbors and friends.  The money earned will be used to repay the loan and buy more fabric and sewing supplies.”

The final element is the loan structure.  Loan payments are due on a bi-weekly basis at a defined location.  All transactions in this phase (except the savings account) will be in cash.

• All loans are made for a period not to exceed one year.

• A savings amount will be added to each loan.

• The savings amount will be deposited in a bank account in the business owner’s name at the end of the loan term.