MicroLoan Program

The SBA MicroLoan Program provides working capital to smaller businesses.

Loan Amount

Up to $50k

Term

Up to 6 Years

Time To Funding

As few as 30 Days

Interest Rate

8 – 13%

SBA Microloan Program

The SBA MicroLoan Program provides working capital to smaller businesses. Under the MicroLoan program the SBA facilitates loans to intermediary non-profit lenders who in turn make non SBA guaranteed loans to for-profit businesses and non-profit child care centers. In 2016, these intermediary lenders loaned a total of $58 million to small businesses, with the average loan amount just under $15,000.
Examples:
Office equipment for a graphic design company
Operating capital for a non-profit child care center
Promotional costs for a startup

MicroLoan Program In Detail

What You'll need to qualify

    • Credit score above 660
    • May require some collateral

    SBA MicroLoans are distributed by a number of intermediate non-profit lenders who will each have their own qualifying process, therefore additional criteria may apply.

Benefits and Drawbacks

Benefits

  • Set payments at regular intervals
  • Can be used for a wide variety of purposes
  • Relatively low interest rate
  • Long repayment schedule

Drawbacks

  • Lengthy application process
  • May carry early payment penalty
  • Variable interest rates may increase

If you’re confused or need clarification about the qualifying requirements for the SBA 7(a) Loan Program, please contact us. We’ll be happy to help.