NEW YORK: Crystal Feng, left, Assemblyman Ron Kim, Tshering Hiring, John Choe and Simon Gerson of the Greater Flushing Chamber of Commerce, Mike Cheng, Taehoon Kim and Alice Lee are all smiles at the kickoff of the chamber’s Flushing Lending Circle initiative.
The Greater Flushing Chamber of Commerce is hoping that a small but innovative step can prove to be the key to unlock credit for individuals and business owners.
The chamber is launching a Flushing Lending Circle, in which they hope to combine customary immigrant practices with modern technology and finance to allow immigrant entrepreneurs to gain access to business capital.
“The biggest obstacle to entrepreneurship in our community is the lack of credit,” said John Choe, executive director of the chamber in an email. “The goal of our Flushing Lending Circle program is to help entrepreneurs overcome this obstacle so they can access the mainstream financial system and secure the capital they need to start or grow their business.”
In a subsequent telephone interview, Choe said such arrangements might typically include 10 friends or family members. Using $100 as an example, Choe said a group might have 10 individuals who contribute $100 per month, with a different member taking home the pot of $1,000 each month until all have had a chance.
While he said the practice is common in immigrant communities from China, Korea, the Caribbean and Hispanic communities, the chamber will work with Chhaya Community Development Center of Jackson Heights and Mission Asset Fund of San Francisco to make sure all payments into the circle are reported to reputable credit agencies.
Over time, each member builds up the credit that can be hard to establish.
“This problem has been perhaps the biggest hurdle for new immigrant small business owners as they move to this country to pursue the American Dream,” said Assemblyman Ron Kim (D-Flushing).
“That $1,000 won’t get you a car or a mortgage,” Choe acknowledged. “But it might help you build enough credit so you can go to a micro lender or a community bank for a loan.”
Simon Gerson, president of the Greater Flushing Chamber of Commerce, said in the organization’s statement that all some people need is an opportunity.
“By providing a platform where people can create the credit history necessary to access conventional bank financing we will help ambitious members of our community realize their dream of starting their own business,” he said.
