Microloans
Smaller-size loans of up to $50,000 provided through SBA funding intermediaries.
What is a microloan?
The microloan program provides loans up to $50,000 to help small businesses and certain not-for-profit childcare centers start up and expand. The average microloan is about $13,000.
SBA provides funds to specially designated intermediary lenders, which are nonprofit community-based organizations with experience in lending as well as management and technical assistance. These intermediaries administer the Microloan program for eligible borrowers.
Am I eligible?
To be eligible for a microloan, businesses must:
- Not be a type of ineligible business
- Be an operating business
- Operate for profit
- Be located in the U.S.
- Be small under SBA size requirements
How do I use a microloan?
Microloans can be used for a variety of purposes that help small businesses expand. Use them when you need less than $50,000 to start and/or grow your small business.
Examples include:
- Working capital
- Inventory
- Supplies
- Furniture
- Fixtures
- Machinery
- Equipment
Proceeds from an SBA microloan cannot be used to pay existing debts or to purchase real estate.
How do I apply?
To apply for a microloan, work with an SBA-approved intermediary in your area. SBA-approved lenders make all credit decisions and set all terms for your microloan.
Contact an intermediary
Find authorized intermediary lenders participating in SBA’s microloan program.
How do I pay back my microloan?
Loan repayment terms vary according to several factors.
Repayment terms
- Amount, planned use, lender requirements, needs of the small business owner
- Maximum repayment term allowed for an SBA microloan is seven years
Interest rates
- Interest rates vary depending on the intermediary lender
- Generally, between 8%-13%
Existing borrowers
For help with your account balance, due date, or any other questions regarding the specifics of your loan, please contact your microlender directly.