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Eco Commerce Review Mar/Apr 2014
Microloan Program
The 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 provides funds to specially designated intermediary lenders, which are nonprofit community-based organizations with experience in lending as well as management and technical assistance. These intermediaries administer the Microloan program for eligible borrowers.
Each intermediary lender has its own lending and credit requirements. Generally, intermediaries require some type of collateral as well as the personal guarantee of the business owner.
Use of Microloan Proceeds
Microloans can be used for:
Working capital
Inventory or supplies
Furniture or fixtures
Machinery or equipment
Proceeds from an SBA microloan cannot be used to pay existing debts or to purchase real estate.
READ MORE ABOUT Mcroloan Program
SBA Micro Loan Program