Who qualifies for an SBA microloan?
Short answer
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)).
A microloan borrower must meet SBA's core business tests (sba.gov/loans/microloans, read November 8, 2026):
- Be an operating business.
- Operate for profit.
- Be located in the U.S.
- Be small under SBA size requirements.
- Not be an ineligible type of business.
Startups and childcare centers
SBA says microloans help small businesses and certain not-for-profit childcare centers start up and expand. A borrower can use proceeds to establish a nonprofit childcare business (13 CFR § 120.707(a)).
Who the program aims to reach
13 CFR § 120.700 says the program assists women, low income individuals, minority entrepreneurs and other small businesses needing small amounts of financing.
Size test
A microloan applicant must meet the size standard for its primary industry (13 CFR § 121.301(a)). The alternative net worth test in § 121.301(b) applies only to 7(a) and 504 loans.
Who is barred
An intermediary cannot lend to a business with an Associate who is currently incarcerated. It also cannot lend to a childcare business with an Associate on probation or parole for an offense against children (13 CFR § 120.707(a)).
Credit
SBA does not review microloans for creditworthiness, so each intermediary decides. Above $20,000, you must show you cannot get credit elsewhere at comparable rates and have good prospects for success (13 CFR § 120.707(b)).
Ask lending partners about your loan
Tell us the amount you need and what it is for. We refer you to lenders that may fund businesses like yours, and it costs you nothing.
Janover Capital LLC is not a lender and is not the SBA. The lender makes the credit decision. A lender or marketplace may pay us a referral fee if we connect you, at no cost to you. Advertiser disclosure.