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.

SCKEDD Loan Application

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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