SBA Microloan Program
Small Business Administration
Up to $50,000
SBA-backed small loans through nonprofit community lenders
SBA funds nonprofit community lenders (called intermediaries) who then make small loans — up to $50,000 — to startups and small businesses that can't access conventional credit. Founders don't apply to SBA directly; they apply to an intermediary in their area. Most intermediaries require participation in business training or coaching alongside the loan. Average loan is about $13,000. Interest rates run 8–13% depending on the intermediary.
- Funding type
- Loan
- Level
- Federal
- Amount range
- $500 – $50,000
- Realistic amount
- Most Microloan borrowers receive $5,000–$25,000. First-time borrowers or those with thin credit histories often start at…
- Deadline
- Rolling — no SBA program deadlines. Apply any time directly to a participating intermediary lender in your area.
- Status
- active
- States
- Nationwide
- Payment model
- lump sum
Who qualifies
- Small business or startup operating in the U.S. — no minimum time-in-business required for most intermediaries
- Nonprofit childcare centers are also eligible (rare exception to the for-profit-only SBA rule)
- Must meet the intermediary lender's own underwriting criteria — varies significantly by lender
- Most intermediaries require collateral and a personal guarantee from business owners
- Must participate in the intermediary's technical assistance or training program (often required before or during loan approval)
- Cannot use loan proceeds to pay existing debts or purchase real estate
Hard requirements
- Requires federal certification:
What it covers
Eligible expenses
- Working capital for operations (payroll, rent, utilities, supplies)
- Inventory and raw materials
- Furniture, fixtures, and equipment
- Machinery and tools
- Business rebuilding, reopening, or expansion costs
- Technology and software (when used operationally)
- Marketing and advertising expenses
Ineligible expenses
- Repaying existing business or personal debt
- Real estate purchase or mortgage payments
- Speculative investments
- Personal expenses unrelated to the business
- Any use prohibited by the specific intermediary's lending policies
How to apply
-
1
Find an SBA-approved intermediary lender in your area
Go to sba.gov/local-assistance and search for microloan intermediaries in your state. Intermediaries are nonprofits — community development financial institutions (CDFIs), Women's Business Centers, community development corporations. Examples: Accion Opportunity Fund (national), Grameen America (major cities), LiftFund (TX, FL, Southeast). Each serves a specific geography; some focus on specific demographics (women, veterans, immigrants).
~2 hrs
-
2
Complete required pre-loan training or counseling
Most intermediaries require 4–20 hours of business training before or during the loan application. This may cover business planning, financial management, marketing, or industry-specific topics. Some intermediaries offer free training; others charge a small fee. This is a program requirement — not optional — and is part of the program's design to improve loan success rates.
~12 hrs
-
3
Submit your loan application to the intermediary
Requirements vary by intermediary but typically include: business plan or executive summary, 1–2 years of personal tax returns, business tax returns or financial statements (if available), 3–6 months of bank statements, government-issued ID, and a description of how you'll use the funds. Many intermediaries have simplified applications for loans under $10,000. Credit requirements are more flexible than conventional lenders.
~10 hrs
-
4
Intermediary underwrites and approves
The intermediary — not SBA — makes the lending decision. They use their own underwriting criteria, which tend to be more flexible than banks. Factors: business viability, character of the owner, ability to repay, collateral. Some intermediaries use character-based lending and relationship factors. Approval decision: typically 1–4 weeks.
~1 hrs
-
5
Close the loan and receive funds
Loan closing is handled by the intermediary. Funds are disbursed directly by the intermediary — not from SBA. The intermediary sets the interest rate (8–13%), loan term (up to 7 years), and repayment schedule. Many intermediaries offer flexible payment terms for new businesses.
~2 hrs
Find an intermediary matching your demographic — Women's Business Centers, immigrant CDFIs, and veteran lenders have the most flexible underwriting. Frame your request around business growth, not expense coverage.
Deadline & timing
Each intermediary sets its own intake process and may have rolling or periodic application windows. Find intermediaries at sba.gov/local-assistance or search 'SBA Microloan intermediary [your state]'. Turnaround from application to funding: typically 2–8 weeks depending on intermediary capacity and documentation completeness.
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Last reviewed 2026. GrantCompass is an independent funding-discovery tool and is not affiliated with any government agency. Always confirm details on the official program page.