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ACESBA

Small loans for startups and young businesses

SBA Microloan

An SBA Microloan is a loan of up to $50,000 (about $13,000 on average) made by a nonprofit intermediary lender, which also provides business training. Terms run up to 7 years at rates generally between 8% and 13%.

Updated October 2026 for SOP 50 10 8.1, effective October 1, 2026.

Maximum
Up to $50,000 (the average is about $13,000)
Terms
Up to 7 years
Rates
Set by the intermediary lender, typically 8% to 13%
SBA guarantee
Funds come from SBA to the intermediary lender, which makes all credit decisions
Collateral
Set by the intermediary lender; most ask for some collateral and a personal guarantee
How to apply
Through an SBA-approved microloan intermediary in your area.

Checked against sba.gov, October 2026. Lenders set their own terms within SBA limits.

Good for

  • Working capital
  • Inventory and supplies
  • Furniture, fixtures, machinery and equipment

Not for

  • Buying real estate
  • Paying off existing debt

Who qualifies

  • A small, for-profit business (and certain nonprofit childcare centers)
  • Applicants must be U.S. citizens or U.S. nationals living in the U.S. (rule extended to microloans in 2026)
  • Each intermediary sets its own credit and collateral requirements
  • Many intermediaries require business training before or during the loan

What to prepare

  • A business plan, even a short one
  • Projections or a simple cash flow forecast
  • Personal and business tax returns, if you have them
  • A list of exactly what the loan will buy

Your lender may ask for more. The Lender Document Checklist covers every program in detail.

SBA Microloan: common questions

What can an SBA Microloan be used for?
Working capital, inventory, supplies, furniture, fixtures, machinery and equipment. It cannot pay existing debts or buy real estate.
Can a new business get an SBA Microloan?
Yes. Microloans are designed for startups and young businesses. Each intermediary sets its own credit and collateral requirements, and many require business training.
Where do I apply for an SBA Microloan?
With an SBA-approved microloan intermediary in your area. SBA lists them on sba.gov.