The US Governement has a MicroLoan Program that provides small
loans to new start-up companies, newly established businesses,
or loans to help small business growth concerns.
Under this government loan program the Small Business
Administration, (SBA) will make funds available to nonprofit
community based lenders (also known as intermediaries) which, in
turn will make loans available to eligible borrowers in amounts
of up to $35,000.
You will submit your application to a local intermediary and
then all the credit decisions are made at a local level.
Terms:
You can get a micro loan for a maximum term of 6 years. The loan
terms will vary according to how much you are borrowing, what
you are using the loan for, and your needs as a small business
owner. TERMS, INTEREST RATES AND FEES:
Interest Rates:
The interest rates on your loan will vary according to the
intermediary lender and also the costs involved from the US
Treasury.
Collateral:
Although collateral is not always required, each intermediary
will have its own credit requirements. If you are a business
owner in need of a loan, be prepared to offer some sort of
callateral as a personal guarantee from you as the business
owner.
Did you know?
Each intermediary is required to provide business based training
and technical assistance to its micro loan borrowers.
Individuals and small businesses applying for microloan
financing may be required to fulfill training and/or planning
requirements before a loan application is considered.
How to Find an Intermediary:
To get a list of participating Intermediary lenders AND
non-lending technical assistance providers go to the SBA's
website. This page will show you state by state intermediary
lenders, their addresses, their email address and phone numbers
for you to contact someone in your own state:
http://www.sba.gov/financing/microparticipants.html
About the author:
Rebecca Game is the founder of Digital Women, an online
community for women in business. A 30 year entrepreneur and
dedicated to helping other women find grants and loans. Visit
her site:
Grants for
Women
http://www.digital-women.com
