SBA microloans
SBA microloans provide up to $50,000 through approved community intermediary lenders for small businesses and certain nonprofit childcare centers. The maximum repayment period is seven years. SBA: microloans; eCFR: 13 CFR 120.707. Last checked .
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Who can get an SBA microloan
Intermediaries lend to eligible small businesses, with a specific exception allowing a nonprofit childcare business. Loans above $20,000 require the borrower to demonstrate an inability to obtain comparable-rate credit elsewhere and good prospects for success. No borrower may owe an intermediary more than $50,000 at a time. eCFR: 13 CFR 120.707. Last checked .
What a microloan can pay for
Microloan funds can cover working capital, inventory, supplies, furniture, fixtures, machinery and equipment. They cannot pay existing debt or buy real estate. SBA: microloans. Last checked .
Interest rates and maximum-rate rules
SBA describes typical microloan rates as 8%–13%; that is a general range, not the legal ceiling. Under 13 CFR 120.707, the maximum is the interest rate on SBA’s loan to the intermediary plus 8.5 percentage points for loans of $10,000 or less, or plus 7.75 points for larger loans. SBA: microloans; eCFR: 13 CFR 120.707. Last checked .
Lenders, fees and documents
Apply through an SBA-approved intermediary in your area. The intermediary makes the credit decision and sets the loan terms. Ask it for its document checklist, collateral requirements and an itemized description of any fees; SBA’s borrower overview does not give a universal borrower fee schedule. SBA: microloans. Last checked .
Prepare a business plan, requested amount and proposed use of funds, financial projections, credit information and details of possible collateral. SBA also recommends working with a resource partner to organize tax returns and bank statements. The lender supplies the final document checklist. SBA: Lender Match; SBA: financial preparation; SBA: 7(a) loans. Last checked .
Questions about SBA microloans
What is the maximum SBA microloan?
SBA microloans provide up to $50,000 through approved community intermediary lenders for small businesses and certain nonprofit childcare centers. The maximum repayment period is seven years. SBA: microloans; eCFR: 13 CFR 120.707. Last checked .
Can I use a microloan for real estate or existing debt?
Microloan funds can cover working capital, inventory, supplies, furniture, fixtures, machinery and equipment. They cannot pay existing debt or buy real estate. SBA: microloans. Last checked .
Can a nonprofit get a microloan?
Intermediaries lend to eligible small businesses, with a specific exception allowing a nonprofit childcare business. Loans above $20,000 require the borrower to demonstrate an inability to obtain comparable-rate credit elsewhere and good prospects for success. No borrower may owe an intermediary more than $50,000 at a time. eCFR: 13 CFR 120.707. Last checked .
Official SBA help
SBA’s Lender Match is a free online tool for connecting small businesses with prospective lenders. SBA: Lender Match instructions (PDF). Last checked .
SBA district offices and resource partners help with business planning and applications. The local-assistance directory includes Small Business Development Centers, SCORE, Women’s Business Centers and Veterans Business Outreach Centers, with free or low-cost counseling and training. SBA: local assistance; SBA: 7(a) loans. Last checked .
Each fact links to the official source checked on the date shown. Confirm the requirements and costs for your application with SBA or the participating lender.