The MicroLoan Program provides very small loans to start-up, newly established, or growing small business concerns and certain not-for-profit childcare centers. Under this program, SBA makes funds available to nonprofit community based lenders (Microlender Intermediaries) which, in turn, make loans to eligible borrowers in amounts up to a maximum of $50, 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.
General Program Requirements
Each intermediary lender has its own lending and credit requirements. However, business owners contemplating application for a microloan should be aware that intermediaries will generally require some type of collateral, and the personal guarantee of the business owner.
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. Interest rates vary, depending upon the intermediary lender and costs to the intermediary from the U.S. Department of the Treasury.
In the United States, the MicroLoan Program is a program administered by the Small Business Administration (SBA). The MicroLoan Program provides microloans to start-up, newly established, or growing small business concerns.
Under this program, SBA makes funds available to non-profit community based lenders (intermediaries) that in turn, make...
Gib Clarke served as program associate for population, environment, and health issues for the Woodrow Wilson Center’s Environmental Change and Security Program and the Global Health Initiative.
He previously worked as a program assistant for Program for Appropriate Technology in Health (PATH), where he conducted evaluations of reproductive...