Microloan Program

Objective

To assist entrepreneurs, business owners, and other individuals possessing the capability to operate successful business concerns and to assist small business concerns in those areas suffering from a lack of credit due to economic downturns. Under the Program, the Small Business Administration (SBA) makes loans or provide guaranties to private, non-profit, and quasi-governmental organizations (intermediary lenders) that utilizes the loan funds to make short-term, fixed interest rate microloans in amounts up to $50,000 to start-up, newly established, and growing small business concerns. The Microloan Program is to be used exclusively for working capital, inventory, supplies, furniture, fixtures, machinery, and/or equipment. In addition, the SBA will make grants to participating intermediary lenders to provide marketing, management, and technical assistance to prospective borrowers and borrowers receiving microloans. Under the Program, SBA will also provide training for intermediary lenders participating in the Microloan Program.

Who Can Apply

• Small Business Person

An applicant is considered eligible to apply if it meets the definition of an intermediary lender as published in program materials, 13 CFR, and PL 102-140, and meets published minimum experience and capability requirements.

Who Benefits

• Small Business Person

Small businesses, minority entrepreneurs, nonprofit entities, business owners, women and low-income, and other individuals possessing the capability to operate successful business concerns.

Assistance Types

• Direct Loan
• Training

Program Contact

daniel.upham@sba.gov
202-205-7001