What is SBA Microloan?

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.

What are the interest rates on SBA Microloans?

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.

What are the eligibility criteria for SBA Microloan?

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:

• Be a start-up, newly established, or growing for-profit small business concern or, a non-profit child care center.
• Qualify as a small business under SBA size standards.
• Cannot be in an ineligible industry (similar to 7(a) requirements).
• Must be a U.S. citizen, lawful permanent resident, or non-citizen lawfully in the U.S. with a work permit.

Apply today for an SBA Microloan with Merchant Cash Advance 360

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):

• Written business plan
• Business and personal tax returns
• Balance sheets and profit and loss statements
• Financial projections or budget
• Resumes of business owners
• Personal financial statements
• Personal credit report
• Articles of incorporation
• Applicable business licenses and permits

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:

• Writing a business plan.
• Sales strategies.
• Accounting.

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.

NOTE:

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.