Smaller-size loans of up to $50,000 provided through SBA funding intermediaries.


What is a microloan?

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.

SBA 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.

Am I eligible?

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.

How do I use a microloan?

Microloans  can  be used for a variety of purposes that  help small businesses expand. Use them when you need  less than $50,000 to  rebuild, re-open, repair, enhance, or improve your small business.

Examples include: 

  • Working capital 
  • Inventory 
  • Supplies 
  • Furniture 
  • Fixtures 
  • Machinery 
  • Equipment 

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

What do I need to apply?

Microloans are available through certain nonprofit, community-based organizations that are experienced in lending and business management assistance. Individual requirements will vary.

To apply for a microloan, work with an SBA-approved intermediary in your area. SBA-approved lenders make all credit decisions and set all terms for your microloan.

Contact an intermediary

Find authorized intermediary lenders participating in SBA’s microloan program.

How do I pay back my microloan?

Loan repayment terms vary according to several factors: 

Repayment terms 
  • Amount, planned use, lender requirements, needs of the small business owner 
  • Maximum repayment term allowed for an SBA microloan is six years 
Interest rates 
  • Interest rates vary depending on the intermediary lender 
  • Generally, between 8%-13%

Existing borrowers

For help with your account balance, due date, or any other questions regarding the specifics of your loan, please contact your lender directly, or contact the SBA loan servicing center listed on your account statement.

Short URL: sba.gov/microloans
Last updated April 8, 2024