The SBA Micro-Loan Program
SBA Micro Loan Terms
Small Business Association (SBA) micro loan terms can vary depending on a number of different reasons. They include:
- The size of the loan - SBA micro loans can only reach a maximum of $35,000. The amount will impact the terms.
- The designated use of money - SBA micro loans are available for a variety of reasons. Start-up, newly established and even growing businesses may qualify.
- The lender in question - The Small Business Administration does not write loans; it backs them. With this in mind, the lender might have a specific set of terms. Loans of this nature can only be written for a maximum of six years.
SBA micro loans are generally written by nonprofit, community-based lenders. This means funding is not typically available through standard banking institutions.
Applying For Micro Loans
To apply for a SBA micro loan, borrowers need to contact a designated intermediary in their local area.
For more information on SBA micro loan instruments, visit the Small Business Administration's web site.
