LINCOLN — Most loans are based on collateral and credit history, but a longtime banker and former CEO of Cornhusker Bank, Alice Dittman, is basing her loans on something different: character and integrity.
Dittman announced Alice's Integrity Fund in July, and since then, four Lincoln businesses have received loans of $5,000 or less. She donated $1 million to the Lincoln Community Foundation to establish the microloans.
"It's a heartbreak in banking when you have to turn someone down because they don't have the collateral," Dittman said.
So far, the loans have gone to expand a candle company; to a new counseling business; for another station at a hair salon; and for a startup aimed at helping homeowners document their belongings for insurance claims and other uses.
Sarah Allison was one of the first to receive an Alice's Integrity Fund loan. The former preschool teacher turned her hobby of making soy candles into a business. Less than a year later, Allison has been able to expand sales of Hallow Candle Co. into seven local businesses.
But she needed a small loan to continue her growth.
"We are just going to change people's lives one loan at a time," said Deb Payne, the microloan program's manager at Community Development Resources, which handles the loans with funds that Dittman donated to the Lincoln Community Foundation.
Dittman, now retired, was president and CEO of Cornhusker Bank. She also served as chairwoman of the Lincoln and Nebraska Chambers of Commerce, president of the Nebraska Bankers Association and chairwoman of the Community Bankers Association, a part of the American Bankers Association.
Dittman was the first female bank president in the Omaha-Lincoln area. "Alice is a true pioneer of this state. It's really so fitting that she is a pioneer for our community in this," said Barb Bartle, Lincoln Community Foundation president.
During her more than 50 years in banking, Dittman said she saw the need for small-business loans every day. Small, new businesses have a lot more risk of failure, but Dittman saw a need for people who don't have the background, education or financial backing to get loans.
Kreifels works at Forsyth Insurance Agency in Lincoln and saw the need for a business that documents people's valuables. Without documentation, it's difficult for homeowners to file insurance and theft claims. She needed a small loan to get the
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