Under this government loan program the Small Business Administration, (SBA) will make funds available to nonprofit community based lenders (also known as intermediaries) which, in turn will make loans available to eligible borrowers in amounts of up to $35,000.
You will submit your application to a local intermediary and then all the credit decisions are made at a local level.
Terms:
You can get a micro loan for a maximum term of 6 years. The loan terms will vary according to how much you are borrowing, what you are using the loan for, and your needs as a small business owner.
Interest Rates:
The interest rates on your loan will vary according to the intermediary lender and also the costs involved from the US Treasury.
Collateral:
Although collateral is not always required, each intermediary will have its own credit requirements. If you are a business owner in need of a loan, be prepared to offer some sort of callateral as a personal guarantee from you as the business owner.
Did you know?
Each intermediary is required to provide business based training and technical assistance to its micro loan borrowers. Individuals and small businesses applying for microloan financing may be required to fulfill training and/or planning requirements before a loan application is considered.
How to Find an Intermediary:
To get a list of participating Intermediary lenders AND non-lending technical assistance providers go to the SBA's website.
This page will show you state by state intermediary lenders, their addresses, their email address and phone numbers for you to contact someone in your own state:
http://www.sba.gov/financing/microparticipants.html
About the Author:
Rebecca Game is the founder of Digital Women, an online community for women in business. A 30 year entrepreneur and dedicated to helping other women find grants and loans. Visit her site: http://www.digital-women.com Grants for Women.
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