Microloan Program

Agency: Small Business Administration

Program: Microloan Program

Program Description: The Microloan Program was developed to increase the availability of very small loans to prospective small business borrowers. Under this program, the SBA makes funds available to nonprofit intermediaries, who in turn make loans to eligible borrowers.

Eligibility: Virtually all types of for-profit businesses that meet SBA eligibility requirements are eligible.

Funding Information: Loans amounts range from under $100 to a maximum of $25,000. The average loan size is $10,000. Depending on the earnings of the business, the loan maturity may be as long as six years. Rates are pegged to no more that four percent over the prime rate. Fees are the same as for any 7(a) loan. Each non-profit lending organization has its own loan requirements, but must take as collateral any assets bought with the Microloan. In most cases, the personal guaranties of the business owners are also required.

Timelines: Applications are accepted year round. The intermediary in less than one week can usually process completed applications.

Contact: Int www.sba.gov

Sacramento (916)498-6410 Fresno (209)487-5791

Glendale (818)552-3210 San Diego (619)557-7250

Santa Anna (714)550-7420 San Francisco (415)744-6820