The SBA Microloan Program
MicroLoan Program provides very small loans to start-up, newly
established, or growing small business concerns. Under this
program, SBA makes funds available to nonprofit community
based lenders (intermediaries) which, in turn, make loans
to eligible borrowers in amounts up to a maximum of $25,000.
The average loan size is about $10,500. Applications are submitted
to the local intermediary and all credit decisions are made
on the local level.
Terms, Interest Rates and Fees
The maximum term allowed for a microloan is six years. However,
loan terms vary according to the size of the loan, the planned
use of funds, the requirements of the intermediary lender,
and the needs of the small business borrower. Interest rates
vary, depending upon the intermediary lender and costs to
the intermediary from the U.S. Treasury.
Each intermediary lender has its own lending and credit requirements.
However, business owners contemplating application for a microloan
should be aware that intermediaries will generally require
some type of collateral, and the personal guarantee of the
To apply, contact the intermediary
lender nearest you.
The U.S. Small