SBA microloans: questions and answers
Short answer
This page lists 8 answers on SBA microloans. Each gives the rule first and names the SBA source it rests on.
- Answers in this topic
- 8
- Distinct sources
- 16
- Last checked
- Nov 8, 2026
These answers cover SBA microloans: the size limit, who lends, what the money can buy and how to apply.
All 8 answers on SBA microloans
Each entry gives the short answer. Open it for the full explanation and its sources.
How does the SBA Microloan program work?
SBA lends to nonprofit community intermediaries, and they lend up to $50,000 to small businesses. The intermediary makes the credit decision and sets the terms. SBA does not review microloans for creditworthiness (13 CFR § 120.707(a)).
What is the largest SBA microloan you can get?
$50,000, and no borrower may owe one intermediary more than that at any one time. A microloan above $20,000 requires showing you cannot get credit elsewhere at comparable rates and have good prospects for success (13 CFR § 120.707(b)).
What can you spend an SBA microloan on?
You can spend it on working capital and the purchase of materials, supplies, furniture, fixtures and equipment, under 13 CFR § 120.707(a). SBA's page also names inventory and machinery. You cannot use a microloan to pay existing debts or buy real estate.
What interest rate can an SBA microloan charge?
The maximum is the intermediary's SBA loan rate plus 7.75 percentage points on loans over $10,000, or plus 8.5 percentage points on loans of $10,000 or less. Source: 13 CFR § 120.707(c). The rate is fixed, and SBA says it varies by intermediary.
How long can you take to repay an SBA microloan?
Up to 7 years. 13 CFR § 120.707(b) requires each microloan to be repaid within that time. The intermediary sets your actual term based on the amount, the use, its requirements and your needs.
Who qualifies for an SBA microloan?
Small, for-profit operating businesses in the United States, plus certain nonprofit childcare centers. Startups can apply. Each intermediary sets its own credit standards, since SBA does not review microloans for creditworthiness (sba.gov/loans/microloans; 13 CFR § 120.707(a)).
Where do you apply for an SBA microloan?
You apply to an SBA-approved intermediary in your area, not to SBA. SBA publishes a list of microlenders on its website. An intermediary generally may operate in only one state, so start with those in yours (13 CFR § 120.702(b)).
How is a microloan different from a 7(a) or SBA Express loan?
A microloan comes from a nonprofit intermediary, tops out at $50,000 and runs up to 7 years. A 7(a) or SBA Express loan comes from an SBA lender with a partial guaranty, and can reach $5,000,000 or $500,000.
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