"At a time when the nation's biggest banks are keeping a tight rein on credit, community-based microlenders have been trying to fill the gap with low-value loans for mom-and-pop businesses and other entrepreneurs.

Although the loans are too tiny for most banks to handle - ranging from as little as $300 to as much as $35,000 - they can be an important lifeline for borrowers, who use the money to overcome short-term cash flow problems, create new businesses or expand their operations...A study released last week by the nation's biggest microlender, Accion USA, shows that microloans have a ripple effect on the economy. Based on customer surveys, Accion estimated that each loan it generated in 2007 resulted in the creation or retention of 2.4 jobs, not including the loan applicant's own job..."

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