Did you know the SBA has a Microloan Program?

Posted by Michael Hartzell on Tue, Jan 21, 2014

Microloan Program

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.

The U.S. Small Business Administration 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.

Eligibility Requirements

Each intermediary lender has its own lending and credit requirements. Generally, intermediaries require some type of collateral as well as the personal guarantee of the business owner.

Use of Microloan Proceeds

Microloans can be used for:

  • Working capital
  • Inventory or supplies
  • Furniture or fixtures
  • Machinery or equipment

Proceeds from an SBA microloan cannot be used to pay existing debts or to purchase real estate.

Repayment Terms, Interest Rates, and Fees

Loan repayment terms vary according to several factors:

  • Loan amount
  • Planned use of funds
  • Requirements determined by the intermediary lender
  • Needs of the small business borrower

The maximum repayment term allowed for an SBA microloan is six years. 

Interest rates vary, depending on the intermediary lender and costs to the intermediary from the U.S. Treasury. Generally, these rates will be between 8 and 13 percent.

Application Process

Microloans are available through certain nonprofit, community-based organizations that are experienced in lending and business management assistance. If you apply for SBA microloan financing, you may be required to fulfill training or planning requirements before your loan application is considered. This business training is designed to help you launch or expand your business.

Find a Microloan Provider

To apply for a Microloan, you must work with an SBA approved intermediary in your area. Approved intermediaries make all credit decisions on SBA microloans. For more information, you can contact your local SBA District Office or view the list of Participating Microloan Intermediary Lenders in the Attachments list below.  

Ask a Question in the SBA Community

If you have questions about applying for an SBA microloan, you can post it to the SBA online community. 

Download the Intermediary List here.

Read More

Tags: Banking, Business Loans, SBA

Easy Options for Small Business Financing When Banks Won’t Loan

Posted by Michael Hartzell on Mon, Nov 19, 2012

Businesses, particularly those small in size, rely on loans to thrive and prosper.   Since 2007, lending regulations have become tighter resulting in the difficulty for small businesses to obtain loans from credit unions and banks.  The small business community is working to stay afloat as loans continue to lag.

Read More

Tags: Banking, Business Finance

Small Business Lending is Improving: Tips for Finding and Securing the Right Loan

Posted by Michael Hartzell on Sun, Jun 17, 2012
Read More

Tags: Banking, Government, Business Finance

Entrepreneurs Can Raise Money with ROCK THE POST Crowdfunding

Posted by Michael Hartzell on Sat, Jun 16, 2012

Rock The Post is a crowdfunding website designed to fund small businesses, entrepreneurs, and nonprofits.  It is a new tool for entrepreneurs to leverage networks, reach out to new contacts, and fill in the missing pieces of their projects.  Rock The Post provides budding businesses with the means necessary to amass resources and flourish.

Read More

Tags: Banking, Crowdfunding, News

Joe Meissner at Executive Capital Partners Matches Star CEOs with Capital

Posted by Michael Hartzell on Fri, Feb 03, 2012

The track record and experience Executive Capital Partners® shows a long history of great results, media articles and testimonials; all of which show the true value of their services.  On the home page of Executive Capital Partners® you will find an article which was written by San Francisco Magazine.

Read More

Tags: Banking, News

Financing Your Small Business With Credit Cards: The Risks and Benefits

Posted by Michael Hartzell on Fri, Oct 28, 2011

You have a great idea for a business, now how do you pay for it? Financing a startup requires some important decision making, and the choices you make now are likely to impact the business (and your personal finances) for years to come. As banks give out fewer loans, entrepreneurs are increasingly turning to credit cards for business owners to finance their endeavors.

Read More

Tags: Banking, Guest Blog, Credit

Small Business Administration Infographic - An Advantage to Exporting

Posted by Michael Hartzell on Thu, Oct 06, 2011

The Small Business Administration was close to being eliminated in 1996.  For almost 60 years the Small Business Administration (SBA) has been helping businesses get their start by offering an array of services. 

Read More

Tags: Banking, Government, Landing Pages