MicroLoan Program

 

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.

 

 

 

  • Office equipment for a graphic design company

  • Operating capital for a non-profit child care center

  • Promotional costs for a startup

 

 

  • 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.

 

• 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.

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