Richard, In Honolulu we've addressed this problem one of two ways: 1. If the applicant has been in business for over a year, a Federal tax return is sufficient to verify income. 2. If the applicant receives TANF/Food Stamps, they must verify income with them monthly. Our relationship with our State Dept. of Human Services allows us to verify this information with them.
We haven't found any other means of income verification to be acceptable, although you might consider bank statements if regular deposits have been made over time. Another important consideration our loan committee takes into account in these cases is whether the business is receiving assistance from an entity which specializes in micro- or small business support. In many cases, our committee has felt that loan applications of this type are more appropriately handled by a micro-lending program with business support focus. (I believe Seedco has experience in this area?) Good luck, Dave Dave Washburn Ways to Work Program Manager YWCA of Oahu 1040 Richards Street Honolulu, HI 96813 808-538-7061 ext. 248 (direct) 808-531-8541 (fax) >>> [EMAIL PROTECTED] 7/7/2004 9:36:44 AM >>> Hi All, We recently received an inquiry for a Family Loan from an applicant that is self employed and is paid in cash. Since we need to verify the applicant's wages for both program eligibility and capacity for repayment, how is this handled when the applicant's wages are undocumented? Has anyone ever encountered this situation? If so, can you please share your experience with our site? Thank You in Advance Richard Ruiz [EMAIL PROTECTED] Seedco/N-PAC New York, NY
