Microloans

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?

To be eligible for a microloan, businesses must:

• Not be a type of ineligible business
• Be an operating business
• Operate for profit
• Be located in the U.S.
• Be small under SBA size requirements

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  start and/or grow 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.

How do I apply?

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.

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 seven 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 microlender directly.