Small Business Loans & Grants!

Microloans

Under the Microloan Program, the SBA makes funds available to qualified nonprofit organizations, which act as intermediary lenders. The intermediaries use these funds to make loans of up to $35,000 to new and existing small businesses. The intermediaries also provide management and technical assistance to help ensure success. The Microloan Program combines the resources and experience of the U.S. Small Business Administration with those of locally based nonprofit organizations to provide small loans and technical assistance to small businesses

Click Here For More Info on U.S. Government Small Business Loans!

Who is Eligible for a Microloan?
Virtually any type of small business is eligible for the Microloan Program. The form of the business, whether a proprietorship, partnership or corporation, is not a determining factor.

Use of Loan Funds
Microloan funds may be used for working capital or to purchase inventory, supplies, furniture, fixtures, machinery and equipment. Funds may not be used to purchase real estate or to provide a down payment on real estate. The maximum Microloan is $35,000. The average-sized loan is around $10,500.

The maximum term allowed for a loan is six years. Terms may vary according to the size of the loan, the planned use of funds, the requirements of the intermediary lender, and the needs of the borrower. Microloans are direct loans from the intermediary lenders and are not guaranteed by the SBA. Interest rates vary, depending upon the intermediary lender.

Credit Requirements
A Microloan applicant must meet the credit requirements of the local intermediary lender. Generally, the applicant will be expected to have good character, a strong commitment to his/her business idea, and a credit history that provides reasonable assurance that the loan will be repaid. In addition, the applicant should have some management expertise or be willing to participate in training designed to strengthen management skills.

Collateral Requirements
As with credit standards, collateral requirements for the Microloan Program are set by each local intermediary lender. In most cases, loans are at least partially collateralized by equipment, contracts, inventory or other property. Lenders may also require personal guaranties.

Click Here For More Info on U.S. Government Small Business Loans!