Microloan Program
Microloan Program provides very small loans to start-up, newly established, or growing small
business concerns. Under this program, SBA makes funds available to nonprofit community based
lenders (intermediaries) which, in turn, make loans to eligible borrowers in amounts up to a
maximum of $35,000. The average loan size is about $13,000. Applications are submitted to the local
intermediary and all credit decisions are made on the local level.
Terms, Interest Rates, and Fees:
The maximum term allowed for a microloan is six years. However, loan terms vary according to
the size of the loan, the planned use of funds, the requirements of the intermediary lender, and
the needs of the small business borrower. The maximum loan amount is $35,000, however, the average
loan amount is around $13,000. Interest rates vary, depending upon the intermediary lender and
costs to the intermediary from the U.S. Treasury. Generally these rates will be between 8 eight
percent and thirteen percent.
