SBA Microloans
Smaller loan amounts made through nonprofit intermediary lenders, often paired with business assistance.
Program overview
The SBA microloan program provides funding to nonprofit intermediary lenders, which in turn make smaller loans to eligible small businesses. Intermediaries set their own credit criteria within program rules.
How it works
- A business applies directly to an intermediary lender in its area.
- The intermediary evaluates the application under its own criteria and program requirements.
- Loan amounts are smaller than most other SBA programs.
- Many intermediaries also provide training or technical assistance.
Common uses
- Working capital
- Inventory or supplies
- Furniture and fixtures
- Machinery and equipment
Who may be a good fit
- Newer or smaller businesses
- Owners seeking smaller amounts plus guidance
What you may need
- Business bank statements
- Business tax returns
- Personal tax returns
- Year-to-date profit and loss statement
- Balance sheet
- Business debt schedule
- Government-issued identification
- Business formation documents
- Business plan or projections when requested
Potential advantages
- Smaller amounts available for early-stage or smaller needs
- Business assistance is often included
- Local, mission-driven lenders
Potential drawbacks
- Lower maximum amounts than other programs
- Availability depends on intermediaries serving your area
Application process
- Find an intermediary lender serving your area
- Prepare documentation and, if needed, projections
- Apply and complete intermediary review
- Closing and disbursement
General qualification considerations
- Intermediary lender criteria, which vary by organization
- Business plan or projections for newer businesses
- Owner credit profile
- Collateral or guaranty requirements set by the intermediary
Alternatives to consider
Business Lines of CreditA revolving limit a business can draw from as needed, often used for short-term or recurring cash flow gaps.Working Capital FinancingShorter-term financing used to cover day-to-day operating needs rather than long-term assets.Startup FinancingOptions commonly explored by businesses with limited operating history or revenue.
Frequently asked questions
Who makes the loan?
Microloans are typically made by nonprofit intermediary lenders participating in the program rather than by the SBA directly.
This is preliminary information, not an eligibility determination, offer, or approval. Final eligibility, terms, rates and approval are determined by the applicable financing provider.