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.
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. Department of the Treasury.
6 years | |
Variable, Maximum set by SBA | |
$50,000 | |
Monthly | |
None | |
Varies |
Start by finding a participating SBA Lender at SBA Lender Match;
Or contact a local SBA District Office: SBA District Offices
Start by finding a participating SBA Lender at SBA Lender Match;
Or contact a local SBA District Office: SBA District Offices