Maybe Hallman Jr. is just trying to score.

If all that publicity doesn't work, no wonder they both are failing.

I see a possible contest here, Jack. You report the details of a story, then ask the readers to guess if it's real or a bit from Portlandia.

What's perhaps most shocking is that "Mercy Corps" is apparently charging 12% interest rates for business loans. Is that truly a non-profit strategy?

(I've always found it somewhat odd that Portland is home to this Christian evangelical's unquestioned charity.)

What's perhaps most shocking is that "Mercy Corps" is apparently charging 12% interest rates
JK: Lets look at a hypothetical: Suppose that 1 in 10 loans weren't paid back, what would you consider a fair interest rate? What if they had to pay 5% for the money they loaned?

Thanks
JK

Three important pieces of advice for the gal (the secrets of success):
1. Don't spend any money you don't absolutely have to.
2. Don't spend any money you don't absolutely have to.
3. Don't spend any money you don't absolutely have to.

Thanks
JK

JK is right...The 150 periodicals are an unnecessary future expense, even if she may be able to afford it. I would bet that even Rich's Cigars loses money on their extensive magazine selections.

I'd say she is ripe for a PDC grant.

Then when she shuts here doors six months later the O will have forgotten about her.

Today's article was clearly aimed at WW. Front page, third paragraph: ". . .laid off as general manager of Willamette Week. . . ."

WW has been bashing the O for two years now about all of their layoffs. Every time a reporter is canned, they note it on their blog (and sometimes in print). The O clearly wanted to strike back. [Note later in the story they mention that another of WW's employees has to work 20 hours a week at the coffee shop. O reporters would NEVER stoop that low.]

As for the business sense of it all, doesn't pretty much every business start out highly leveraged? I haven't heard many stories of someone who saved up $100k and THEN opened a business. If you can save that kind of working capital, you're probably doing alright in your current job. American capitalism is built on the "borrow/bankruptcy" cycle - the bankruptcy laws have been written that way for at least 80 years.

Apparently it's too much work for some commenters to simply say "hey, good luck to her."

JK: Lets look at a hypothetical: Suppose that 1 in 10 loans weren't paid back, what would you consider a fair interest rate? What if they had to pay 5% for the money they loaned?

I don't doubt that those are appropriate terms and market rates. But these loans are being made by a non-profit, not by a for-profit bank/etc, with the explicit non-profity goal of helping small businesses. So what's the point of the non-profit making such loans if the rates/terms are more or less the same (or in this case, worse) than what one can get off a credit card?

I wish her the best. Sounds like she's busting her ass.

The important take away from this story is the state of the Portland economy. People can't find new work and are running out of options. Small business is important, but doesn't add up to an economy. It's the same batch of money circulating from the cafe, to the food cart, to the small book store, to the boutique, back to the cafe. We need new money coming into the region from larger export businesses.

PJB, the question is what the alternative is. If these are folks who couldn't get a loan elsewhere for less than 20%+ (i.e. a credit card), then 12% is a good rate. Even at 12%, I'd bet MercyCorp loses money on this loan program.

I'm surprised that Mercy Corps is bankrolling somebody's small business. Their mission is international humanitarian aid. What does this have to do with it?

PJBBut these loans are being made by a non-profit, not by a for-profit bank/etc, with the explicit non-profity goal of helping small businesses. So what's the point of the non-profit making such loans if the rates/terms are more or less the same (or in this case, worse) than what one can get off a credit card?
JK: Keeping their non-profit's operation on going by not depleting their working capital.

Or should they just give away all their money and end up bankrupt?

Thanks
JK

"Their mission is international humanitarian aid"...

Now that Portland has joined the Third World, after Tropical Storm Sam Adams, we qualify for Mercy Corp's assistance.

When will the Peace Corps show up here?

So if I open a coffee & magazine shop at 122 & Halsey, will the O write me up too?

Since when is the O in the business of providing free advertising to any business, trendy location or not?

I trust everyone has seen the "Portland: The Final Frontier" demotivational from MemeBase (the ICanHazCheezburger folks.).

Hadn't seen The Final Frontier until you mentioned it.

Here it is:

http://cheezburger.com/ToopsDaWoops/lolz/View/4416470528

Or should they just give away all their money

Generally that is what most non-profits do, in one form or another.

Snards: . . The important take away from this story is the state of the Portland economy. .

So true, and the economy of the country and global for that matter.

Good Luck to all who are looking for work or wanting to create a place for themselves in business, etc.

If building a new headquarters building here in Portland for $42 Million is giving it away, they did a good job of honoring their Mission.

So what's the point of the non-profit making such loans if the rates/terms are more or less the same (or in this case, worse) than what one can get off a credit card?

I think that situation says more about the borrower than the lender.