The SBA Microloan Program is for the small business that needs a little cash to grow or start up. The SBA does not lend money. Third party non-profit intermediaries fund these types of loans. The SBA states that there are over 117 intermediary lenders that are participating in the SBA Microloan Program.
Most Microloans are funded to businesses that cannot obtain a conventional bank loan. In most cases you will need to be turned down from a bank in order to qualify for the Microloan program. Most larger banks do not finance through the SBA Microloan Program. They feel that with the lower loan amount it is not worth their effort. Fortunately, with the challenges in the economy more banks are willing to look at possible financing through this SBA program.
The SBA Microloan intermediaries
typically have experience in the financing of the small business that would want this type of investment. The loan amounts are smaller than a good number of the other loans that the SBA sponsors. The loan amount you could receive is likely to be anywhere between $5,000.00 to $35,000.00, with an average of approximately $10,000.00.
An advantage for the small business is that the Microloan may be used for just about anything except land or building purchases, or to payoff existing debit. Businesses can use the funds for inventory expansion, working capital, equipment and machinery. For the start up business that doesn’t have a history, and the established business that needs a small amount of capital fast, the perfect loan is the SBA Microloan Program.
To learn more visit the SBA Microloan center home page
Category: Payday loans