The SBA Microloan Program provides smaller loans through SBA-approved intermediary lenders, generally nonprofit community-based organizations with experience in lending and technical assistance. The program is designed to help eligible small businesses and certain nonprofit childcare centers start or expand.
Maximum Loan Amount
Eligible borrowers may receive microloans of up to $50,000.
The average SBA microloan is significantly smaller than the maximum, and actual loan amounts depend on the borrower’s needs, eligibility, and the participating intermediary lender’s underwriting.
Common Uses
SBA Microloan proceeds may generally be used for eligible business purposes such as:
- Working capital
- Inventory
- Supplies
- Furniture
- Fixtures
- Machinery
- Equipment
Microloan proceeds cannot be used to purchase real estate or repay existing debt.
Repayment Terms
Repayment terms are established by the participating intermediary lender and may vary based on factors such as the loan amount, intended use of proceeds, lender requirements, and the borrower’s business needs.
The SBA currently states that the maximum repayment term for a microloan is seven years. Interest rates vary by intermediary lender.
Credit and Underwriting
Participating intermediary lenders make the credit decisions and establish the specific loan terms, subject to applicable SBA Microloan Program requirements.
Important: SBA financing is subject to lender underwriting and SBA eligibility requirements. White Feather Capital LLC is not an SBA lender. See our SBA Business Financing Disclosure for additional information.