Microloan Program
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The SBA provides funding for qualified nonprofit community-based lenders who, in turn, provide microloans of up to $35,000 to local entrepreneurs and small business owners, in conjunction with technical assistance training. In the last fiscal year, the average loan size was $11,600. The Recovery Act has provided $50 million in additional funding to support these microloans as well as $24 million for technical assistance training. The SBA provides these technical assistance grants to community-based lenders up to a maximum of 25% of their outstanding SBA debt to enable the intermediaries to provide marketing, management, and business counseling for potential and actual microloan borrowers. Thanks to the Recovery Act, community-based lenders will now be able to provide additional loans and technical assistance to assist start-up businesses and to help successfully grow small businesses. More information on SBA’s Microloan Program
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