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MicroLoan Program

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The SBA MicroLoan Program provides working capital to smaller businesses. This capital may be used for a wide variety of purposes, including but not limited to inventory, machinery, raw materials and supplies, labor costs and marketing. 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.

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  • Office equipment for a graphic design company
  • Operating capital for a non-profit child care center
  • Promotional costs for a startup
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  • 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.

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facts sba microloan

PROS & CONS

  • Set payments at regular intervals
  • Can be used for a wide variety of purposes
  • Relatively low interest rate
  • Long repayment schedule
  • Lengthy application process
  • May carry early payment penalty
  • Variable interest rates may increase

Disclaimer: The above information is provided as a guideline. Some loan conditions may fall outside of these parameters. We recommend that you speak with one of our advisors before taking any course of action based on this information.