Microloan Program
U.S. Small Business Administration
What is Microloan Program?
The MicroLoan Program provides very small loans to start-up, newly established, or growing small business concerns and certain not-for-profit childcare centers. Under this program, SBA makes funds available to nonprofit community based lenders (Microlender Intermediaries) which, in turn, make loans to eligible borrowers in amounts up to a maximum of $50,000. The average loan size is about $13,000. Applications are submitted to the local intermediary and all credit decisions are made on the local level.
Administration
Microloan Program is administered by U.S. Small Business Administration.
Program Requirements
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 business owner.A Microlender is a non profit organization that receives a loan from SBA. In turn, the Microlender makes small loans to very small businesses in the community. The Microlender also provides technical assistance to the small business. All credit decisions are made by the Microlender. The application process may vary depending on the Intermediary Microlender.
Application Details
What is the application process for Microloan Program?
Start by finding a participating SBA Lender at SBA Lender Match;
Or contact a local SBA District Office: SBA District Offices