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The SBA MicroLoan Program is the largest federal loan program that is solely dedicated to supporting the credit needs of small businesses and self-employed entrepreneurs. There are other SBA Loan Programs that get more press, but this program is vital to many small businesses in continuing to keep their doors open. The SBA MicroLoan Program was designed to provide small loans for three basic type of business owners. The three types of business owners this program was designed for are listed below.
The SBA Micro Loan Program provides funds to nonprofit community based Lenders. The Community Based Lenders then make these funds available to the business owners. The Micro Loans Program provides SBA Loans to a maximum of $ 35,000. The average loan size is $ 13,000. Credit Decisions are all made by the Community Lenders. Once again if you are doing your own packet, you will want to develop a business relationship with these lenders. |
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SBA Micro Loan’s Terms, Interest Rates, and Fees:
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SBA Micro Loan Collateral Requirements You will find that each SBA Approved Lender will have their own Lending Requirements and Credit Requirements. The SBA Micro Loan will require a personal guaranty for the funds being loaned. Additionally you may be required to put up collateral for the loan as well. Some SBA intermediary Lenders will require it and some will not. Additionally this requirement will vary with many factors. |
Do Your Research….It Will Help!Keep in mind that SBA Microloans are distributed within the communities of the SBA Approved Intermediary Lenders. If you do not live within that community or your business will not benefit that community. You should research your state and local government agencies as an alternative funding sources. Each of these organizations will have funds availble to help communities. www.accionusa.org is a nationwide SBA MicroLoan Program that has online submission capabilities. Women business owners can go to www.countmein.org. This organization offers SBA MicroLoans for Women owned and controlled businesses. |
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SBA Micro Loan – Technical Assistance Each SBA Approved Intermediary Lender is required to provide you business training and business assistance during the micro loans life. Make sure to do your research on what training is available and what training is mandatory for you to attend. Some of these programs provide really good information and gives you an outside perspective on your business. Make sure you take the advice and training to make yourself better and take your business to new heights. Remember these SBA Approved Lenders have seen who is successful and who is not. It is good for you to seek out their advice, then make your own decision based upon all your knowledge. This is another asset for you to use on your journey to success. |
| If want to find out more about the SBA Micro Loan Program, you can contact our team or contact your local SBA Approved Micro Loan Lender. The information you need in your packet can be found on our website. Like all SBA Loans you need to make sure your preparation is complete and your Business Plan is Solid! When you submit your SBA Micro Loan Package, the SBA Micro Loan Lender will be looking for your ability to properly plan, forecast, resource, project cash flow and have the ability to pay off your loan within the life of the loan. |
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