Home / Loan types / SBA Microloan

Loan type

SBA Microloan

Small loans up to $50,000 from nonprofit lenders, with help for newer businesses.

Run the numbers How to apply

Loan size
Up to $50,000
Term
No more than 6 years
Lender
Nonprofit community intermediaries funded by the SBA
Rate cap
Intermediary's SBA cost plus 7.75% (over $10,000) or 8.5% ($10,000 or less)
Allowed uses
Working capital, inventory, supplies, furniture, fixtures, equipment
Not allowed
Real estate or paying off existing debt

What it is

Microloans are the SBA's smallest product and work differently from every other one. The SBA lends money to nonprofit community organizations called intermediaries, and the intermediaries lend up to $50,000 to small businesses and startups. Many also provide training and mentoring.

Rates are higher than a bank's SBA loan, but intermediaries are more willing to work with startups, owners with thin credit, and businesses banks turn away.

Largest loan by program (log scale)
SBA Microloan$50,000
SBA Express$500,000
SBA 7(a)$5,000,000

Bars use a logarithmic scale so the smaller programs stay visible.

A good fit if you want

  • Startups and very small businesses
  • Owners rebuilding credit
  • Borrowers who want business coaching along with the loan

Probably not the right tool if

  • Real estate purchases or refinancing
  • Anyone who needs more than $50,000

Typical requirements

  • Eligible for-profit small business (some nonprofit childcare centers also qualify)
  • A business plan and cash-flow projections
  • Intermediary-specific credit and collateral standards, often more flexible than a bank's

Run the numbers

These calculators run in your browser and are estimates, not offers. Change any number to see the effect.

How to apply

  1. Find an intermediaryUse the SBA's microlender search or our directory to find one that serves your area.
  2. Attend any required counselingSome intermediaries require training before or after funding.
  3. Apply with a planBring a short business plan, projections and personal financial information.
  4. Receive fundsClosing is generally simpler and faster than a bank SBA loan.

Need a lender, an SBA district office or a free counselor? Use the national directory.

Common questions

Is there a minimum?

Intermediaries set their own minimums; amounts range from a few hundred dollars up to $50,000.

Can I use it to buy a building?

No. Real estate and refinancing existing debt are not allowed.

Keep reading

Sources

General information, not financial, tax or legal advice. LoansFlow is not a lender and this is not an offer of credit. Program rules, limits, fees and rates change; confirm current terms with your lender and the issuing agency. SBA figures reflect SBA.gov and the fiscal year 2027 fee notices (effective October 1, 2026).