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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 used to provide information and technical assistance to prospective Microloan borrowers.  Grant funds may be used to attend training required by SBA, but this must be approved by SBA.

An intermediary can receive grant funds of not more than 25 percent of the outstanding balance of all of its SBA loans. The actual amount is determined by a set formula and is subject to availability of appropriated funds. Intermediaries that do not meet minimum performance criteria are not eligible to receive grant funds. The intermediary must contribute, solely from non-Federal sources, an amount equal to 25 percent of the grant. Contributions may be made in cash or in kind, but an intermediary may not borrow its contribution.

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