Applying for a Term Loan Online

You can apply for an SBA microloan online because many SBA lenders offer online loan applications. SBA microloans offer small loan amounts of up to $35,000, with the average loan amount of $13,000. The funds are provided by a private lender and secured by the SBA. The SBA sets forth guidelines and the as long as the lender follows the guidelines, the SBA insures the loan against default. The lending requirements vary from lender to lender and 46 of 50 states have micro lenders.

Anyone who receives an SBA microloan will find that there are restrictions as to what the money can be used for. The money can be used for nearly any business expense except for paying off debt or consolidating debt. The money cannot be used to purchase any form of real estate, regardless of whether or not it is being used for the business.