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How to become a Microloan intermediary

SBA’s Microloan Program provides small businesses with small short-term loans for working capital or the purchase of inventory, supplies, furniture, fixtures, machinery and/or equipment. SBA makes funds available to specially designated intermediary lenders, which are nonprofit organizations with experience in lending and technical assistance. These intermediaries then make loans to eligible borrowers in amounts up to a maximum of $50,000. The average loan size is about $13,000. Applications are submitted to the local intermediary and all credit decisions are made on the local level.

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    Terms & Conditions for Intermediaries

    An intermediary may not borrow more than $750,000 in the first year of participation in the program. In later years, the intermediary's obligation to SBA may not exceed an aggregate of $5 million,...

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    Terms & Conditions for Microloans to...

    An intermediary may make micro-loans to any small business eligible to receive financial assistance, including a borrower establishing a nonprofit childcare business. Proceeds from micro-loans may...

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    Technical Assistance Funds

    An intermediary may be eligible to receive grant funding from SBA to provide micro-loan borrowers with marketing, management, and technical assistance. Up to 25 percent of the grant funds may be...