Complete Guide to SBA Microloans programs under Small Business Administration.
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The SBA microloan program offers fast loans of up to $50,000 to existing small businesses and startup businesses that may not qualify for a traditional bank loan or fall short of a bank’s eligibility criteria.
The SBA Microloan program can be used for nearly any business financing need, from working capital to refinancing high-cost debt, to equipment upgrades and more.
You can apply online for an SBA Microloan by filling out this online form or you can call us @ +1 (888) 885-0007.
The average microloan amount was $14,434 in FY 2020, and the average interest rate was 6.5%. The longest-loan term is six years in FY 2020.
If the business is applying for a loan of more than $20,000 it must meet a “credit elsewhere” test that essentially demonstrates the applicant can’t get similar financing from non-federal sources.
For the most part, applicants must meet the eligibility requirements of SBA 7(a) loans to be considered eligible borrowers for an SBA Microloan.
At a minimum, the business applying must:
For more detailed eligibility requirements, please fill up this application or call @ +1 (888) 885-0007 for more information.
When you apply, you will generally be asked for some or all of the following documentation (some it may not be necessary if your business is a startup):
The entire application and funding process will take a few weeks to a couple of months depending on the organization. You may be required to complete training as part of the application process or as a condition of approval.
If you aren’t interested to take training, we offer classes, workshops, and one-on-one mentoring on a wide variety of topics, which includes:
We recommend business owners take advantage of these resources, especially when starting a new business.
There are no requirements regarding the age of the business.
You cannot apply an SBA microloan to refinance existing debt or to purchase real estate. If you need to refinance the debt or buy real estate, you should consider other SBA loan programs, such as a 7(a) loan or 504 loans.