Thoughts on forming a small dollar business loan program to shore up our lending test?

Have any of you had experience with designing a small business loan program that catered to small dollar loans? I'm guessing something in the neighborhood of $20,000 or less and targeting some of the business incubators in our area?

The deals won't be as profitable as the big loans, but I'll get more loans for the same amount of money tied up.

Let the ideas fly.

If you are targeting business incubators with start-up ventures and loans through such groups-no matter the size-you will see a higher delinquency and default rate. Often times you will find that incubators work with public-private/not for profit lenders to get these start-ups off the ground. If you are looking to boost your 1071 results-look to those no-for-profit lenders for refi's. Once those start-ups can stand on their own, the not-for-profit lenders look to unload them.

Good point, Scott. Let's hear others.

Who else has had success with a program specifically targeting small business?