Running or starting a small business often sounds exciting — until you hit the biggest roadblock: finding affordable funding. Traditional banks may turn you away if your credit isn’t perfect, or they demand collateral you don’t have. Meanwhile, online lenders may approve you fast, but at sky-high interest rates that can crush your cash flow.
That’s where the SBA Microloan Program comes in. Backed by the U.S. Small Business Administration (SBA) and issued through local nonprofit lenders, this program gives entrepreneurs and nonprofit childcare centers access to up to $50,000 in affordable financing — with flexible terms designed to help you grow, not sink you in debt.
But here’s the catch: you can’t apply directly through the SBA. The only way to get approved is by working with an SBA-approved intermediary lender in your state.
👉 To save you time, we’ve listed SBA Microloan lenders and intermediaries by state right below. Scroll through, find your state, and start your application immediately.
SBA Microloan Lenders & Intermediaries (By State)
Here’s a table of actual SBA-approved microloan intermediaries. Each entry includes an “APPLY NOW” link (to their website or application page), where available.
Important: Always verify lender status and terms directly before applying.
| State | Intermediary/Lender | Notes / Focus | APPLY NOW |
|---|---|---|---|
| California | Working Solutions CDFI | Long-standing community lender in CA | APPLY NOW |
| New York | Accompany Capital | Nonprofit microlender in NY | APPLY NOW |
| Georgia | Access to Capital for Entrepreneurs | Regional SBA microloan intermediary | APPLY NOW |
| Alabama | Community Enterprise Investments, Inc. | Serves AL & FL, microloan intermediary | APPLY NOW |
| Pennsylvania | Community First Fund | Microloan and small business lending in PA | APPLY NOW |
| Colorado | Colorado Enterprise Fund | Nonprofit microlender in CO | APPLY NOW |
| California | Vermont Slauson LDC, Inc. | Lender in the Los Angeles region | APPLY NOW |
What Is an SBA Microloan?
An SBA microloan is a small-dollar business loan designed to help entrepreneurs who may not qualify for traditional bank financing but still need a modest amount of capital to grow or launch their business.
Unlike other SBA loan programs, the SBA doesn’t lend the money directly. Instead, it provides funds to approved nonprofit lenders (called intermediaries), who then issue loans to eligible small businesses and certain nonprofit childcare centers. These local organizations often provide business counseling, training, and mentoring alongside the loan support you won’t get from most banks or online lenders.
Key Facts at a Glance
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Loan Amounts: Up to $50,000
(average SBA microloan is about $13,000) -
Interest Rates: Typically 8% – 13%
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Repayment Terms: Up to 6 years
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Approved Uses: Working capital, inventory, supplies, furniture, fixtures, machinery, and equipment
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Not Allowed: Real estate purchases or paying off existing debts
Why SBA Microloans Exist
The SBA created this program to bridge the gap for entrepreneurs who:
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Don’t meet the strict credit standards of big banks
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Need smaller amounts of financing than most lenders offer
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Benefit from personalized support and guidance, not just capital
For many small businesses — especially startups, minority-owned, women-owned, and childcare providers — an SBA microloan can be the first real chance to secure affordable financing and build a track record for future loans.
SBA Microloan Eligibility Requirements
Because SBA microloans are issued through local nonprofit intermediaries, eligibility criteria can vary slightly by lender. However, most lenders follow the same general guidelines set by the SBA. Here’s what you need to know:
Basic Eligibility
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Business Type:
You must operate a for-profit small business or a nonprofit childcare center. -
Business Location:
Your business must be based in the United States. -
Loan Purpose:
Funds can be used for working capital, inventory, equipment, supplies, furniture, or fixtures — but not for real estate or debt repayment.
Credit & Financial Requirements
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Credit History:
A decent personal credit score is usually expected, though lenders are often more flexible than banks. -
Ability to Repay:
Lenders will review your income, cash flow, or financial projections to ensure you can repay the loan. -
Personal Guarantee:
Most lenders require a personal guarantee from the business owner(s). -
Collateral:
Some form of collateral is usually requested, though requirements are more flexible than traditional banks.
Documentation & Planning
Many lenders will ask for:
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A solid business plan with clear goals and projections
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Financial statements or projections (for startups)
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Tax returns (personal and/or business)
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Government-issued identification and basic business registration documents
How to Apply for an SBA Microloan Step by Step
Getting an SBA microloan isn’t complicated, but the process is different from a bank loan. Here’s how to move from research to funding:
Step 1: Locate an SBA-Approved Intermediary Lender
The SBA doesn’t lend directly. You’ll apply through a nonprofit intermediary lender in your state. Use the SBA’s lender directory or our interactive map to find one near you.
Step 2: Gather Your Documents
Most lenders will ask for:
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A detailed business plan
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Financial statements or projections
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Tax returns (personal and/or business)
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Identification and basic business information
Preparing these ahead of time speeds up approval.
Step 3: Submit Your Application
Contact the lender directly to complete their application form. They may also offer free business counseling to strengthen your plan.
Step 4: Meet With the Lender
Many intermediaries require an in-person or virtual meeting to review your proposal, discuss terms, and answer questions.
Step 5: Review Terms & Sign the Agreement
If approved, you’ll get an offer outlining your interest rate, repayment schedule, and any collateral requirements. Once you sign, funds are typically disbursed within a few weeks.
Tip: Because each intermediary has its own process, it pays to contact more than one to compare terms and support services.
SBA Microloan vs. Other Small Business Loans
Before you decide on financing, it’s helpful to see how an SBA microloan stacks up against other popular small-business funding options.
| Feature | SBA Microloan | SBA 7(a) Loan | Merchant Cash Advance / Short-Term Loan |
|---|---|---|---|
| Maximum Loan Amount | Up to $50,000 | Up to $5 million | Varies (often based on daily sales) |
| Typical Interest Rate | ~8% – 13% | ~5% – 10% (varies by lender and guarantee fee) | Very high (can exceed 30% APR equivalent) |
| Repayment Terms | Up to 6 years | Up to 25 years (depending on use of proceeds) | Daily or weekly repayment over 3–18 months |
| Uses of Funds | Working capital, inventory, equipment | Working capital, real estate, equipment, and expansion | Short-term cash flow needs |
| Collateral / Guarantee | Usually required but flexible | Usually required | Often, no collateral but a personal guarantee |
| Application Process | Through nonprofit intermediaries | Through SBA-approved banks | Directly with an alternative lender |
Why this matters:
If you need smaller amounts of affordable funding with hands-on support, the SBA microloan program is often a better fit than fast, expensive online loans.
Pros and Cons of an SBA Microloan
Every financing option has upsides and trade-offs. Knowing them up front helps you decide whether this program fits your business.
Pros
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Affordable interest rates compared to most online or short-term loans.
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Flexible uses of funds — working capital, inventory, equipment, and more.
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Hands-on support — many intermediaries offer free training or mentoring to borrowers.
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More accessible for startups and small businesses than traditional bank loans.
Cons
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Lower maximum loan amount (capped at $50,000).
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Not for every purpose — can’t be used for real estate purchases or paying off existing debt.
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Longer approval process than fast online loans.
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Collateral and personal guarantees are often required.
Tip: If you need more than $50,000 or you need funding immediately, compare SBA microloans with SBA 7(a) loans or other financing options.
Real Success Stories
Seeing how other entrepreneurs have benefited from SBA microloans can help you picture the program working for you.
Case Study 1: A Local Bakery Expands Production
A small bakery in Texas used a $25,000 SBA microloan to buy new ovens and hire two additional employees. Within a year, its sales doubled, and the owner credited the microloan’s affordable payments for enabling steady growth.
Case Study 2: A Startup Childcare Center Opens Its Doors
A nonprofit childcare center in Florida secured a $40,000 SBA microloan to furnish classrooms and cover initial operating costs. The lender also provided free financial management coaching, which helped the center break even in its first year.
Case Study 3: A Minority-Owned Construction Business Upgrades Equipment
A contractor who struggled to get traditional financing accessed a $30,000 SBA microloan to purchase updated machinery, boosting productivity and winning larger contracts.
Tip: Many intermediary lenders offer training and mentorship alongside the loan — something you rarely get from traditional banks or online lenders.
SBA Microloan FAQ
Can startups apply for an SBA microloan?
Yes. Startups and newly formed businesses can qualify if they demonstrate the ability to repay and present a solid business plan. Many intermediary lenders actually specialize in assisting new businesses.
How long does it take to get approved?
It varies by lender, but most SBA microloans are approved and funded within 2–6 weeks. Having your documents ready can shorten the timeline.
What can I use an SBA microloan for?
You can use the funds for working capital, inventory, supplies, furniture, fixtures, machinery, and equipment. You cannot use them for real estate purchases or to pay existing debts.
Do I need collateral or a personal guarantee?
Most intermediaries will require some form of collateral and a personal guarantee, but the requirements are typically more flexible than banks.
What credit score do I need?
There’s no fixed minimum credit score. However, a good personal credit history strengthens your application. Some lenders will also consider your business’s performance and your plan to repay.
How much can I borrow?
Up to $50,000. The average SBA microloan is around $13,000.
Additional Resources
Looking for more ways to strengthen your business finances? Explore these helpful guides:
Each of these resources will give you tips to increase your chances of approval or compare other funding options.
Ready to Apply?
You’ve learned how SBA microloans work, who qualifies, and how to apply. Now it’s time to take the next step toward affordable business financing.
We partner with SBA-approved microloan lenders nationwide. Our team can help you locate the right intermediary and guide you through the process.