SBA'S MICROLOAN PROGRAM

The MicroLoan Program was developed to increase the availability of very small loans to prospective small business borrowers. Under this program, the SBA makes funds available to nonprofit intermediaries, who in turn make loans to eligible borrowers in amounts that range from under $100 to a maximum of $25,000. The average loan size is $10,000. Completed applications can usually be processed by the intermediary in less than one week.

TERMS, INTEREST RATES AND FEES:

Depending on the earnings of the business, the loan maturity may be as long as six years. Rates are pegged to no more than four (4) percent over the prime rate. Fees are the same as for any 7(a) loan. Virtually all types of for-profit businesses that meet SBA eligibility requirements are eligible.

COLLATERAL

Each non-profit lending organization has its own loan requirements, but must take as collateral any assets bought with the microloan. In most cases, the personal guaranties of the business owners are also required.

Stewart-Gordon Associates, Inc.
P.O. Box 781992
Dallas TX 75378-1992
voice (972) 620-2489
fax (972) 406-0213
e-mail Tom Stewart-Gordon