About this programme
The SBA Microloan Program provides loans up to $50,000 to help small businesses and certain not-for-profit childcare centers start up and expand. The average microloan is about $13,000.
The U.S. Small Business Administration does not lend this money directly. It lends to specially designated intermediary lenders — nonprofit, community-based organizations with experience in lending as well as management and technical assistance — and those intermediaries make the microloans to businesses in their service area, on their own credit terms.
Because intermediaries are local nonprofits rather than banks, the program is built for businesses that need a smaller amount of working capital or equipment financing and may not fit a conventional bank loan.
How it works
SBA lends funds to an approved intermediary, which in turn lends to the small business as a microloan of up to $50,000.
Intermediaries set their own additional requirements, make all credit decisions independently, and establish the specific terms of each microloan (loan amount, rate within the program's range, and structure) — these vary by intermediary and by location.
The maximum repayment term is 7 years. Interest rates are generally between 8% and 13%, set by the intermediary.
Microloan funds can be used as working capital, or to purchase inventory, supplies, furniture, fixtures, machinery, or equipment. They cannot be used to pay existing debts or to purchase real estate.
Alongside the loan, intermediaries provide management and technical assistance to borrowers as part of the program's design.
Who can apply
Eligible borrowers are for-profit small businesses (startup, newly established, or growing) and certain not-for-profit childcare centers.
General SBA loan eligibility applies: the business must be operating for profit, located in the U.S., and meet SBA size standards. Businesses in SBA's ineligible-business categories do not qualify.
Because microloans are issued by individual nonprofit intermediaries rather than SBA directly, each intermediary sets its own additional underwriting criteria within the program's rules, so exact requirements vary by lender.
How to apply
- Identify an SBA-approved microloan intermediary that serves your area, using SBA's lender directory or the Lender Match tool on sba.gov.
- Apply directly with that intermediary — SBA does not take microloan applications itself. All credit decisions and loan terms are set at the intermediary level.
- Work with the intermediary through its own application and documentation process; many intermediaries also offer the management and technical assistance that is part of the program.
Frequently asked
How much can an SBA microloan provide?
Up to $50,000, with the average microloan around $13,000. The exact amount offered is set by the intermediary lender based on your application.
Does the SBA lend the money directly?
No. SBA lends funds to approved nonprofit intermediary lenders, and those intermediaries make the microloans to small businesses and eligible childcare centers.
What can a microloan be used for?
Working capital, and purchases of inventory, supplies, furniture, fixtures, machinery, or equipment. It cannot be used to pay off existing debt or to buy real estate.
What are the repayment terms and interest rates?
The maximum repayment term is 7 years. Interest rates generally run between 8% and 13%, set by the intermediary lender rather than a single SBA-wide rate.
Who is eligible to apply for a microloan?
For-profit small businesses that are operating, located in the U.S., meet SBA size standards, and are not in an SBA ineligible-business category, plus certain not-for-profit childcare centers.
How do I find an intermediary lender?
Use SBA's directory of authorized microloan intermediaries or the Lender Match referral tool on sba.gov to find one serving your area, then apply with that organization directly.
Reviewed 2026-08-16. Programmes change — confirm current eligibility, amounts and deadlines on the official page before you apply. CapEasy is a private consultancy and is not affiliated with any government authority.