The SBA Microloan Program offers up to $50,000 business loans to small enterprises and select non-profit organizations to help them start out and grow. A typical microloan is around $13,000.
The SBA50K (Small Business Administration) distributes funding to specifically approved intermediary lenders, which are nonprofit community-based organizations with lending, management, and technical assistance experience. The Microloan program is administered by these intermediaries for qualifying borrowers.
SBA Microloan Program Requirements for Eligibility
Each intermediate lender has its own credit and lending criteria. Intermediaries typically require some form of collateral as well as the business owner's personal guarantee.
Purpose of microloans proceeds
Microloans can be used for a variety of purposes, including:
- Supplies or inventory
- Fixtures or furniture
- Equipment or machinery
- Working capital
The money from an SBA microloan can't be used to pay off debts or buy real estate.
Terms of repayment, interest rates, and fees
The length of time it takes to repay a loan depends on a number of factors:
- Amount of the loan
- Funds are being used in a planned manner.
- The intermediate lender sets the requirements.
- Borrower requirements for small businesses.
Interest rates fluctuate based on the intermediary lender and the US Treasury's fees to the mediator.
Procedure for Submitting an Application
Microloans are accessible from select nonprofit, community-based groups with lending and business management experience. Before your loan application is evaluated for an SBA microloan, you may be required to complete training or planning requirements. This business course is intended to assist you in starting or expanding your company.
Locate a Microloan Company
You must engage with an SBA-approved intermediary in your area to apply for a Microloan. All credit decisions on SBA microloans are made by approved intermediaries. You can contact SBA50K at for additional information; we offer a $50K small business loan.
Website: https://www.sba50k.com/
Also Read: SBA Microloan Program Requirements For Eligibility