SBA Microloan

The SBA Microloan Program is for small businesses which have modest credit needs and do not qualify for financing from traditional credit sources.

Eligibility

Your business could be eligible for the SBA Microloan if it meets the following standards:

  • For profit, privately owned, established small businesses located in the 14 county service area.
  • Must meet size standards of the US Small Business Administration (most small businesses do).
  • Start-up or growing businesses which may not meet regular bank lending criteria, but which have a track record in business and/or paying their bills on time and which have reasonable prospects of being able to repay a loan.
  • Business must have a turndown from area lenders for projects $20,000 or greater.
  • Have sufficient monthly income to pay back the loan.
  • If business owner is behind in payments, child support payments, or in default on any loans including government and student loans this could make the owner ineligible.
  • Loans under $10,000 may qualify for an accelerated application process, depending on credit history.

Loan Amount

  • Minimum of $500 with a maximum of $50,000. Total debt of project cannot exceed $150,000.

Interest Rate/Fees

  • Fixed rate of interest. 7.75% for loans over $10,000; 8.50 % for loans under $10,000.
  • 2% Fee
  • No application fee.

Repayment Term

  • 72-month maximum term.
  • Interest-only payment period possible.
  • No prepayment penalty.

Collateral

  • First lien on assets purchased with the proceeds of the loan are required, but this is not the only consideration for collateral.
  • Personal guarantees of the owner(s) (20% or greater) of the business are required.

Use of Funds

  • Working capital, expansion, purchase inventory, equipment financing.
  • Nearly any legitimate business need.
  • Cannot fund improvements to residential property, refinance existing debt, or purchase real estate.

Technical Assistance and Training

  • Available at no or minimal charge through the term of the loan.
  • Includes accounting, marketing, basic business management, and employee concerns.

For More Information Contact

Christie Henry, Program Manager
Email: christie@sckedd.org
316-262-7035
200 W. Douglas, Ste. 710
Wichita, Kansas 67202