Microloan Program Print Share
SBA Microloan ProgramDeveloped by the SBA, the Microloan Program assists those small businesses underserved by conventional lenders, but are seeking access to financing and technical assistance. Through this program, small business owners can borrow as much as $25,000 to purchase material necessities, which may include machinery, furniture and fixtures, inventory, and working capital. The SBA does not make the microloans directly; rather the agency works in conjunction with intermediary lenders, who then carry out the program at the local level. As of May 1995, statistics show that more than 15 percent of the loans supported by this program have gone to small manufacturers; approximately 3.4 percent have gone to the service sector. Furthermore, loan proceeds have been utilized for a variety of purposes, with about 40 percent used for working capital, 32 percent to purchase equipment, and 17 percent to build inventories. In order to increase the access of very small firms to outside technical assistance, the Microloan Program has aligned itself with 25 non-lending technical assistance providers that help low-income individuals seeking to start or enlarge their small business concerns. http://www.sba.gov/financing/sbaloan/microloans.html Technical Assistance Providers: NM Community Development Loan Fund Women's Economic Self-Sufficiency Team |