Microloan Program

 

To assist women, low-income, and minority entrepreneurs, business owners, and other individuals possessing the capability to operate successful business concerns and to assist small business concerns in those areas suffering from a lack of credit due to economic downturns. Under the Program, the Small Business Administration (SBA) makes loans or provide guaranties to private, non-profit, and quasi-governmental organizations (intermediary lenders) that utilizes the loan funds to make short-term, fixed interest rate microloans in amounts up to $50,000 to start-up, newly established, and growing small business concerns. The Microloan Program is to be used exclusively for working capital, inventory, supplies, furniture, fixtures, machinery, and/or equipment. In addition, the SBA will make grants to participating intermediary lenders to provide marketing, management, and technical assistance to prospective borrowers and borrowers receiving microloans. Under the Program, SBA will also provide training for intermediary lenders participating in the Microloan Program.

Active 59.046 Small Business Administration A - Formula Grants; E - Direct Loans; K - Advisory Services and Counseling Fiscal Year 2016 No current data available No data available
Fiscal Year 2017 No current data available
Fiscal Year 2018 No data available
Fiscal Year 2022 In FY 2022, the SBA’s Microloan Intermediaries approved 5,055 microloans totaling $82.6 million, supporting more than 19,000 jobs. For more information about SBA accomplishments, access the SBA Congressional Budget Justification and Annual Performance Report: https://www.sba.gov/document/report-congressional-budget-justification-annual-performance-report Small Business Act, Section 7(m) (15 U.S.C. 636(m)), Public Law 105-135 An applicant is considered eligible to apply if it meets the definition of an intermediary lender as published in program materials, 13 CFR, and PL 102-140, and meets published minimum experience and capability requirements. Small businesses, minority entrepreneurs, nonprofit entities, business owners, women and low-income, and other individuals possessing the capability to operate successful business concerns. An entity may apply to SBA to become an Intermediary lender. A small business may apply to an intermediary for a microloan. Small business seeking funding must: (1) Meet SBA size standard requirements as defined in Chapter 13 of the U.S. Code of Federal Regulations; (2) meet type of business requirements as published by SBA; and (3) meet lending requirements of local intermediary lenders. This program is covered under 2 CFR 200, Subpart E - Cost Principles. Preapplication coordination is not applicable. 2 CFR 200, Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards applies to this program. Microloan Borrowers: Apply directly to intermediary lenders. Intermediary Lenders: Apply to the SBA Office of Financial Assistance, Microenterprise Development. Decision prior to deadlines and according to established procedures. Intermediaries are notified by SBA. Microborrowers are notified by the intermediaries. Contact the headquarters or regional location, as appropriate for application deadlines Loan applicants can expect an answer from the SBA approved intermediary lender within 15 days from the date of application acceptance. Decisions on the part of the SBA are final. SBA will not become involved in appeals by microborrowers to intermediary lenders except in the case of suspected violation of Federal regulations. Based on performance. Applications are evaluated individually. Each is rated on its own merits or, in the case of an affiliated group, on the merits of each of the organizational parts that make up the whole. Qualitative and quantitative information regarding the applicant is reviewed. Criteria include but may not be limited to: (1) Experience level of Organizational Officers, Directors and personnel to be active in the Microloan Program operation; (2) Financial strength of the applicant organization; (3) Knowledge of the local economy; (4)Lending/loan performance; (5) Current and proposed technical assistance program; (6) Current and Proposed market to be served; (6) Availability and probability of matching contributions; and (7) Information submitted in the grant application package. Loans to intermediaries with terms and restrictions as provided in Public Laws 102-140, 102-366 and 105-135 and subsequent regulations as published in the Federal Register. Performance Reports: Information available at SBA's website at www.sba.gov. Required annually. Systems sufficient to generate accurate and acceptable reports. Statutory formula is not applicable to this assistance listing.

Matching is mandatory. Intermediaries must match 15% of the amount of all loans from SBA under the Microloan Program. Intermediaries must also match 25% of the amount of all grants under the Microloan Program.

MOE requirements are not applicable to this assistance listing. The maximum life of a loan to an intermediary lender is 10 years. Grants award amounts are based on the total outstanding balance of loans made to the intermediary lender by SBA and by the annual microloan production of the intermediary lender. See the following for information on how assistance is awarded/released: Additional detail available at https://www.sba.gov/sites/default/files/2018-05/Microloan%20SOP%2052%2000%20B.pdf Additional detail available at SBA's website at www.sba.gov. See Appendix IV of the Catalog of Federal Domestic Assistance under Small Business Administration. Microenterprise Development Division - Daniel Upham
409 3rd St., SW
8th Floor
Office of Economic Opportunity
Microenterprise Development Division
Washington, DC 20416 US
daniel.upham@sba.gov
Phone: 202-205-7001 http://www.sba.gov 73-0400-0-0-376 (Direct Loans) FY 22$40,000,000.00; FY 23 est $110,000,000.00; FY 24 est $110,000,000.00; FY 21$48,347,000.00; FY 20$54,685,950.00; FY 19$42,266,000.00; - (Advisory Services and Counseling) FY 22$58,176,000.00; FY 23 est $41,000,000.00; FY 24 est $41,000,000.00; FY 21$54,589,465.00; FY 20$34,636,255.00; FY 19$34,408,121.00; - No data available. Contact the SBA Office of Financial Assistance, Microenterprise Development Division, 409 3rd Street S.W., Mail Code 7881, Washington, DC 20416. Fiscal Year 2022 The Microloan Program provides loans to nonprofit intermediary lenders that subsequently lend funds, in amounts of $50,000 or less, to small businesses and startups.