UAlbany’s Small Enterprise Economic Development (SEED) Program as an Exemplar

Microlending provides small amount of loans to those entrepreneurs who are typically considered unbankable. These individuals lack collateral, steady employment, and a verifiable credit history and therefore cannot meet the minimal qualifications to gain traditional credit. While a number of microlending and microenterprise development programs exist that aim to serve low-income populations in the United States, only a few practice “character-based” lending, which focuses on the character of potential clients relative to other traditional components. This chapter on “UAlbany’s Small Enterprise Economic Development (SEED) Program as an Exemplar” discusses a collaborative project among a local university, a credit union, and a state agency which has provided microloans and business opportunities to underserved populations. This chapter discusses the SEED story from the process of creating such an innovative and unique program to the current model and status, including some lessons for those who hope to replicate its model.