$5,000 and a dream
The 2008 financial crisis left the U.S. economy stunned. Banks had issued too much money too fast, which created increased housing prices and financial speculation. That ultimately led to a decline in lending from financial institutions.
Small businesses were greatly affected, as they rely on access to credit and depository institutions for financial needs. In fact, small business loans decreased from $659 billion in 2008 to $543 billion in 2011, according to the Small Business Administration.
In 2009, Greenville’s Grace Church decided to change that. It started Nasha Lending, a nonprofit that collects funds from investors and issues those funds as microloans up to $5,000 to under-resourced entrepreneurs.
“Microloans are so important, because they provide the startup capital that some businesses need,” said Nasha Lending director Taylor Beard. “They also help reach populations that are excluded from mainstream financial sectors, which can also help the community. The typical client is a woman with a family. Most are community-minded and want to help other families. So these loans have a trickle-down effect of sorts.”
The name derives from the Hebrew word “nasha,” which means, “to lend.”
Entrepreneurs must complete an online application, create an action plan and participate in a 10-week business class. The nonprofit selects entrepreneurs based on their business model, personality and the amount of funds needed.
“We’re really building a relationship with the entrepreneurs,” said Beard. “So you’ve got to be good for us, too. A good personality is a huge aspect of the vetting process. They should be full of that entrepreneurial spirit.”
In 2010, the nonprofit issued its first loan of $1,800 to Banana Manna, a Greenville-based banana bread business. The business purchased nutritional information and pricing labels.
“Nasha is saving grace,” said owner Chancey Lindsey-Park. “I’m talking to Whole Foods about carrying my bread, and that loan is going to save me a lot of money if it happens.”
Nasha Lending partnered with Kiva Zip in 2012. The crowd-funding platform hosts about 1.3 million lenders. Since then, the nonprofit has issued loans to 11 entrepreneurs.
The no-interest loans are paid off in one to three years, according to Beard. Nasha Lending lowers the payments to ensure repayment if entrepreneurs struggle to pay off the loan. The loan is written off if the business fails. If repaid, the funds are re-loaned to another entrepreneur.
Curating entrepreneurship
Beard joined Nasha Lending in 2011. She had just graduated from Furman University and had an interest in human rights and social justice. In addition to overseeing the microloan program, Beard decided to plan for the future of Greenville.
She established a 10-week project-based learning class, held from June 1 to August 12, to teach entrepreneurial skills and business basics to local students. The first class consisted of four students who started their own businesses.
In 2012, Beard reached out to Mill Village Farms in the Village of West Greenville. The farm had just started its youth development program for at-risk youth. Beard assembled a group of nine students and had them start a business using produce from the farm. The students worked at the farm four days week and learned business basics once a week.
“We know all of our students might not want to be entrepreneurs,” Beard said. “But we want them to be able to think like entrepreneurs, because we know those skills last for the rest of their lives.”
In 2014, the class was restructured as Nasha Lending joined an outreach program in the Village of West Greenville — Mill Community Ministries. The program, an affiliate of Grace Church, also includes Mill Village Farms and The Village Wrench.
“We always had the idea that Nasha would outgrow the walls of Grace Church. It really served as an incubator for both the program and myself. It offered that safe place to grow, somewhere we didn’t have to launch on our own without a plan,” Beard said.
The transition attracted more students to the class and a new project-based curriculum. Now, students develop joint products with local businesses that act as mentors. Past mentors include Banana Manna, Swift Prints and The Village Wrench.
Learning the ropes
In April, Beard decided it was time to help aspiring adult entrepreneurs learn the ins and outs of the business world. She started the Business Entrepreneur Academy, which quickly attracted 10 Greenville-based entrepreneurs, both new and seasoned.
The program, which is held from April 18 to June 27, uses a curriculum founded by LAUNCH, an entrepreneurial advocacy organization in Chattanooga, Tenn. It features lessons about business models, customer service, marketing, budgets and more.
“This class has been so helpful, especially the lessons about marketing. I didn’t do so well with that before,” said Julie Maddox, owner of Benji Bars. “I learned that it’s not about taking a leap into the unknown. It’s about understanding how to present your product to the customers in a way that’s unique and efficient.”
In addition to its educational value, the program allows Beard to determine if an entrepreneur has enough of an education and business plan to receive a microloan. The nonprofit previously used a selection committee to determine the issuance of loans.
The classes are held at Textile Hall, a shared workspace that has become a hub for local entrepreneurs. Beard and her colleagues from Mill Community Ministries began planning the building at 582 Perry Ave. in the Village of West Greenville in 2012. It opened in April.
“It’s a space meant to hold individual businesses, but we wanted a place where entrepreneurs could connect and help one another. Those connections just don’t happen unless entrepreneurs are in close proximity to one another,” Beard said.
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Textile Hall also houses Nasha Lending’s other programs. The nonprofit offers a “faith and finances” class in the fall that explores God’s role in financial decisions. It also offers a “lunch and learn” session that features a local entrepreneur who shares business advice.
The next lunch and learn, which is free and open to the public, is on June 28. It will feature Andrew Smart of Duke’s Manufacturing in Easley.
Nasha Lending plans to close the summer with its annual shark tank competition at the Phillis Wheatley Community Center on July 21. Local entrepreneurs pitch their businesses to a panel of judges, and the winner is awarded a cash prize.
The competition started last year. Greenville resident Willie Benjamin was awarded $1,000 for his printing and embroidery concept, Benji’s Prints.
“All of our programs build a solid foundation for aspiring entrepneuers,” said Beard. “We want to be the place that launches people into entrepreneurship.”
