That first loan of $27 extended by Mohammed Yumus was given to a local woman who wove bamboo stools. She had been paying interest to loan sharks that was so exorbitant, she only earned one penny’s profit on each stool. However, after she borrowed money from Yunus, she purchased her own materials, repaid her debt and expanded her business.

Building on that premise is the Economic & Community Development Institute (ECDI), whose main office is in Columbus, Ohio. The ECDI is a statewide SBA lender that opened in Ohio’s capital’s city in 2004 before expanding to Cleveland, Toledo and most recently to Akron.

The organization began issuing microloans for $5,000 to $35,000, says Steve Fireman, ECDI’s President and General Counsel. Today, it offer loans for $750 to $350,000. The ECDI was established on the premise of serving immigrants primarily who wanted to start small businesses so they could become self-sufficient and entrepreneurs, says Fireman.

Today, he says, “We serve the underbanked and underserved population.”

Technically, the Small Business Administration defines microloans as those $50,000 and under. Although banks are issuing more business loans today than they were prior to the recession in 2008, it can still be challenging for a small business to obtain financing from financial institutions.

“In the U.S., banks generally don’t offer micro-business loans. It’s not financially profitable and attractive, so entrepreneurs turn to organizations like ours to fund their dreams,” says Fireman. Still, his organization has developed close relationships with banking institutions, since they hope to benefit somehow when entrepreneurs are successful. For example, if a start-up proves successful, its owner may seek a personal loan for a home mortgage. That’s not a service offered by ECDI, but by investing in the organization’s efforts, banks will gain in the long run, says Fireman.

There are several beneficiaries of microloans. Of course, the recipient of the loan enjoys the immediate benefit of obtaining funds to fuel their entrepreneurial dreams. The community in which the entrepreneur lives benefits because the new entity generates sales tax, jobs and the need for supporting services such as banking. In addition, having small businesses means consumers can support local entrepreneurs, an attitude that is a growing trend across the United States.

Summed Fireman, “We’re all beneficiaries because people who might otherwise need government benefits are actually paying into the system rather than taking from it.”

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Tami Kamin Meyer is an Ohio attorney and writer.