# SBA Microloans: Small Amounts, Non-Profit Intermediaries and Who They Suit An SBA microloan is a loan of up to $50,000 made by a non-profit intermediary that the SBA funds, not by a bank and not by the SBA. The intermediary sets the interest rate and fees and decides, often after required training. Capital Gurus is not an SBA lender; SBA loans are made by SBA-participating lenders. Expect weeks. [See your financing options](https://capitalgurus.com/apply/) · [(725) 425-4307](tel:+17254254307) Soft credit pull only, no obligation. - Same-day decisions from some providers. Subject to provider approval and document turnaround. - 700+ industries served Rates, factor rates, fees and terms are set by the funding provider that makes your offer and are disclosed in that provider's agreement. Figures on this page are illustrative ranges from providers in our network, not offers. On a microloan the rate, fees and term are set by the non-profit intermediary that makes the loan and are disclosed in that intermediary's agreement. ## In this section - [Compare sBA loans](https://capitalgurus.com/loans-and-financing/sba-loans/) ## At a glance - **Program maximum**: $50,000, an SBA rule, not a Capital Gurus figure - **Term length**: Up to 7 years under program rules; intermediaries commonly write shorter - **Collateral and guarantee**: Generally collateral where it exists plus the owner's personal guarantee - **Cost expressed as**: An interest rate set by the intermediary, plus its own fees, disclosed in the loan agreement - **Who lends and decides**: A non-profit intermediary the SBA funds, not a bank and not the SBA - **Capital Gurus' role**: Guidance only. Capital Gurus is not an SBA lender; SBA loans are made by SBA-participating lenders. We are not an SBA microloan intermediary either. **No microloan rate appears on this page: the intermediary quotes it once it holds your application.** ## What is an SBA microloan? **Definition** An SBA microloan is a loan of up to $50,000 made by a non-profit, community-based intermediary that borrows from the SBA in order to lend, per the SBA's [microloan page](https://www.sba.gov/loans/microloans/). No bank sits in the structure, and there is no SBA credit review of your file. The other programs are on our [SBA loans](https://capitalgurus.com/loans-and-financing/sba-loans/) page. ### Who does what? The SBA lends to the intermediary and sets the rules. The intermediary lends to you, decides and services the loan. The SBA publishes its list of intermediaries at sba.gov. Capital Gurus is not affiliated with the U.S. Small Business Administration. ### Where can the money go? Working capital, inventory, supplies, furniture, fixtures, machinery and equipment. Two uses sit outside the program: **paying off existing debt** and **buying real estate**, whatever the amount. ### What will the intermediary ask? A business plan, collateral where it exists, a personal guarantee, and often business training. Small does not mean unsecured: read [what a personal guarantee means](https://capitalgurus.com/blog/personal-guarantees-explained/) before you sign. Training is a real obligation on your diary. [Estimate a payment](https://capitalgurus.com/calculators/business-loan-calculator/): Put the amount, term and rate from the intermediary's quote into the business loan calculator. ## How much a microloan can be, and over how long The maximum above is an SBA rule, not our figure, and the intermediary sizes each loan to the plan and the cash flow behind it. What the intermediary weighs: - The plan - Cash flow against the payment - The owner's own money in the business - Credit history ### What it can pay for - **Eligible**: Working capital, inventory, supplies, fixtures, machinery and equipment. - **Excluded**: Paying off existing debt and buying real estate, under the program rules. [Program rules](https://www.sba.gov/loans/microloans/) allow terms up to 7 years, set by the intermediary. ### Two habits that help a first application - Call the intermediary for your area before you write the plan. - Read the personal guarantee before the training, not after. One application, and an advisor tells you which route fits before you apply anywhere. [Get my options](https://capitalgurus.com/apply/) · [(725) 425-4307](tel:+17254254307) ## How the cost of a microloan is expressed The intermediary sets the interest rate and discloses it, with its fees, in the loan agreement. - **A rate set by the intermediary**: Within its own and the program's limits. (Quoted once it holds your application) - **A term sized to cash flow**: Program rules allow up to 7 years. (A longer term lowers the payment) On top of the rate, disclosed by the intermediary: - The intermediary's own fees - Any collateral costs [SBA loan rates](https://capitalgurus.com/guides/sba-loan-rates/) explains how SBA pricing works on the other programs. No microloan rate or payment appears on this page: **the intermediary quotes those once it holds your application.** [See how to apply](https://capitalgurus.com/loans-and-financing/sba-loans/microloan/#apply) ### Why the term matters more than the rate On a small amount, spreading it over several years is what turns the payment into one a new business can carry. That is the design of the program. ## Who qualifies for an SBA microloan - **For-profit** a business, or a credible plan to be one - **Local** inside the area the intermediary serves - **Own money** some of the owner's money in the business There is no credit-elsewhere test, but capacity varies: some intermediaries have no money to lend in a given month. We publish no microloan credit-score, revenue or trading-history minimum: each intermediary sets its own. ### If you do not fit Another product often fits now. - Personal credit is the obstacle? [business financing with bad credit](https://capitalgurus.com/solutions/bad-credit/) - A new EIN with no history? [startup business funding](https://capitalgurus.com/loans-and-financing/startup-funding/) - The records are not there? [low-doc business financing](https://capitalgurus.com/solutions/no-doc/) [How to get a startup business loan](https://capitalgurus.com/guides/how-to-get-a-startup-business-loan/) covers what to put in the plan. ### What the intermediary reads Mission-driven, and often wider than a bank's test. - **A clear use of funds.** - **A plan for the payment.** - **Finances in order.** - **Training completed.** ## How to get an SBA microloan You apply directly to one intermediary, not through Capital Gurus. Expect weeks, sometimes longer. ### What the intermediary usually asks for - A short business plan and use of funds - Personal and business financial statements - Tax returns, where the business has filed them - Business bank statements Depending on the intermediary - Details of any collateral - Proof of required training [See your financing options](https://capitalgurus.com/apply/) ### Two questions for the intermediary Does it cover your area, and does it have money to lend this month? To check first whether this is your program, [talk to a funding advisor](https://capitalgurus.com/contacts/). 1. **Check the program fits**: Under $50,000, an eligible use, and no property or refinancing. 2. **Find the intermediary for your area**: The SBA publishes the list at sba.gov. Ask what it is funding right now. 3. **Prepare the plan and the training**: Use of funds, how the payment gets made, and any required training. 4. **The intermediary decides and funds**: It underwrites, sets the rate, closes and services the loan. ## When a microloan is the right tool, and when it is not A modest, tangible purchase in a business a bank cannot read yet. | Ask yourself | Good use | Not for | | --- | --- | --- | | Is it under the cap? | **Stock, tools or a first set of machines.** | **Anything above $50,000.** Use instead: [SBA Express loans](https://capitalgurus.com/loans-and-financing/sba-loans/express/) | | Is it property or old debt? | **Working capital, supplies or fixtures.** | **Buying property or paying off debt.** Use instead: [SBA 504 loans](https://capitalgurus.com/loans-and-financing/sba-loans/504/) | | Is the business young? | **A first year with a clear plan.** | **An established business with filed returns.** Use instead: [business line of credit](https://capitalgurus.com/loans-and-financing/line-of-credit/) | ### Better fit elsewhere - A vehicle, oven or machine: Use instead [Equipment financing](https://capitalgurus.com/loans-and-financing/equipment-financing/), decided largely on the asset - A business in its first years: Use instead [Startup business financing](https://capitalgurus.com/loans-and-financing/startup-funding/), what is open to a young business Capital Gurus is not an SBA lender; SBA loans are made by SBA-participating lenders. - [Best SBA lenders](https://capitalgurus.com/guides/best-sba-lenders/) ## Related financing - [business term loans](https://capitalgurus.com/loans-and-financing/term-loans/): A fixed amount, repaid on a schedule you can put in the budget. - [business line of credit](https://capitalgurus.com/loans-and-financing/line-of-credit/): Standby capital you draw only when you need it, then draw again. ## Keep reading ### Guides - [best SBA lenders](https://capitalgurus.com/guides/best-sba-lenders/) - [SBA loan rates](https://capitalgurus.com/guides/sba-loan-rates/) ### From the blog - [How SBA Loans Work](https://capitalgurus.com/blog/how-sba-loans-work/) - [Business Financing with an EIN](https://capitalgurus.com/blog/business-loan-with-ein/) - [Personal Guarantees Explained](https://capitalgurus.com/blog/personal-guarantees-explained/) [SBA Loans](https://capitalgurus.com/blog/category/sba-loans/) ## SBA microloan questions ### What is an SBA microloan? A microloan is a loan of up to $50,000 made by a non-profit community-based intermediary that borrows from the SBA to fund it. The SBA does not lend to you and no bank is involved. The intermediary underwrites, decides, sets the rate, closes and services the loan on its own criteria. ### How much can I get, and for how long? The program maximum is $50,000, and most microloans are considerably smaller than that. Programme rules allow terms up to 7 years, and intermediaries commonly write shorter ones. The amount and term you are offered are the intermediary's decision, based on what it lends and what your cash flow supports. ### Who decides, and what do they look at? The intermediary decides. These are mission-driven community lenders, so they look at the plan, the owner, the cash flow and the local picture as well as the credit file, and they often weigh factors a bank would not. They are also small, so capacity and timing vary from one intermediary to the next. ### Do I need collateral and a personal guarantee? Expect both. Intermediaries generally take whatever collateral exists and ask the owner to guarantee the loan personally, even on small amounts. A guarantee means the obligation follows you if the business cannot pay. Read what you sign, and read it before the training sessions rather than after. ### Can a business under a year old get a microloan? It is one of the few SBA routes where a young business is a normal applicant rather than an exception, which is the point of the program. You will still need a plan, a clear use of funds, clean personal finances and usually some of your own money in the business. Being young is not a disqualification; being unprepared is. ### Does Capital Gurus arrange SBA microloans? Capital Gurus is not an SBA lender; SBA loans are made by SBA-participating lenders. We are not an SBA intermediary either, and a microloan is applied for directly with the intermediary that covers your area. We will tell you plainly if this is your program and point you at the SBA's own list of intermediaries. Where it is not, we will say which product in our network is. ### What if there is no intermediary near me, or I need the money sooner? Then a microloan is not the route. Intermediaries cover defined areas and some have no capacity to lend in a given month. Providers in our network consider financing from $10K to $10M and some give same-day decisions, subject to provider approval and document turnaround. Cost per dollar borrowed is higher than a microloan's, and that is the trade. Still have a question? [talk to a funding advisor](https://capitalgurus.com/contacts/) ## Plan your first loan: find out whether a microloan or another product fits your business. [Apply now](https://capitalgurus.com/apply/) · Call [(725) 425-4307](tel:+17254254307) About 5 minutes, soft credit pull only. [talk to a funding advisor](https://capitalgurus.com/contacts/) By the Capital Gurus Editorial Team · Reviewed by Joseph Wartz · [Editorial policy](https://capitalgurus.com/editorial-policy/) --- Source: https://capitalgurus.com/loans-and-financing/sba-loans/microloan/ · Last reviewed 2026-10-28 · Capital Gurus is not a lender.