As far as Edward Maznicki is concerned, Pahrump is in serious need of some angels -- entrepreneurial ones, that is.

Maznicki, Senior Corps of Retired Executives (or SCORE) counselor, has been working with Pahrumpians who want to start their own small businesses, get loans from local sources, or what he likes to call "a local angel group."

"The difference between an angel and a venture capitalist, a venture capitalist, when they loan you the money, they expect to take over part of the business," Maznicki explained. "An angel just gives you the money, and at the end of a certain period of time, you must repay everything you borrowed plus interest."

Right now, Maznicki said the residents who need a small loan to start a business have to travel to the major bank branches in Las Vegas.

The reason, Maznicki said, is that it costs the same, and requires the same amount of paperwork and just as many human resources, for the local branches of major banks to process small loan applications as large ones.

And since the Pahrump branches have fewer human resources, according to Maznicki, when a local entrepreneur seeks seed money, the banks "won't even talk to them."

"I had two clients last week, one was looking for $15,000 and the other was looking for $20,000, and there was no way they could get any money," Maznicki said. "They don't want to go to the banks here because the banks won't talk to them."

The benefits of having a local lending entity are simple as far as Maznicki is concerned.

"First of all, the money stays here," Maznicki said. "The money that is borrowed stays here because the people are going to open a business. The money that people loan is going to be here because the interest will be paid to them.

"And the third benefit, of course, is that we'll have another business so the people won't have to drive into Las Vegas for the things they'd like to have."

Under Maznicki's plan, the angel group would be comprised of local businesspeople that would put together a pool from which entrepreneurs could borrow up to $25,000.

"The applicant has to satisfy all of the requirements," Maznicki said. "They have to have something that there is a demand for, that they have some idea how to run that business, and that they don't have to worry about supplies if it's a retail type of business."

Although a formal business plan is not required, Maznicki said it would be highly recommended.

The angel group would then look over the application and decide if it wants to invest in the idea.

"The client would probably not know who the angels are, and the angels will not know who the business owner is directly," Maznicki said. "There will be no personal contact per se, everything will have to handled through the bank."

He said the interest rate on the loans would be about 10 to 12 percent, or slightly higher than what a bank offers.

"There is a little bit more of a risk with these people than there is with a bank," Maznicki said.

So far Maznicki has spoken to a number of local businesses about the group.

"All of these businesses say they're willing to listen," Maznicki said. "They are interested in the idea and the concept, and they want some more details on it first."

Maznicki said the service could also be an option for struggling businesses.