The SBA Microloan Program is for small businesses which have modest credit needs and do not qualify for financing from traditional credit sources.
- – - – -
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.
- Minimum of $500 with a maximum of $50,000. Total debt of project cannot exceed $150,000.
- Fixed rate of interest. 7.75% for loans over $10,000; 8.50 % for loans under $10,000.
- Origination fee – 2% for projects up to $10,000 and 3% for projects over $10,000
- No application fee.
- 72-month maximum term.
- Interest-only payment period possible.
- No prepayment penalty.
- 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, Lending Program Manager
9730 E. 50th Street N.
Bel Aire, Kansas 67226