SBA Microloan Program

What is the SBA Microloan program?

The Microloan program provides loans up to $50,000 to help small businesses and certain not-for-profit childcare centers start up and expand. The SBA provides funds to specially designated intermediary lenders, such as Pursuit, to administer the Microloan program for eligible borrowers. Here’s how to get a small business Microloan:

SBA Microloan Details

• Loan amount: $10,000 to $50,000
• Interest rate: maximum 9.125%
• Term: SBA Microloan terms are 6 years
• Fees: 3% commitment fee, which is financed into your loan
• Decision sent within two business days of submitting a complete loan application (including all required documentation)
• Time to funding: within 5 business days of approval

Is the SBA Microloan right for me?

Established businesses can use the Pursuit Microloan program to support their financing needs. If your business has a break-even or positive cash-flow, and a history of paying its debts, then you’re a good candidate for the SBA Microloan for small businesses. To be considered for automatic approval, you must meet the following requirements:

• Two or more years in business
• Employs two or more people
• Business has cash flow that’s positive or break-even
• Owner’s personal credit score is 640 or higher
• Business is not home-based
• More than $120,000 in annual revenue
• No liens or judgments filed for you or your business within the last 3 years
• Business and owner have no prior bankruptcies

Even if you don’t meet some of the requirements above, apply for a small business loan. You can still work with Pursuit to reach your goals. Find out if you’re eligible for our free business advisory services, which can help you get loan-ready, repair your credit and improve your business’s financial picture for the future.

Please note that we do not lend to money-service businesses; ‘passive’ businesses engaged in owning, purchasing, leasing, or re-selling real estate or other assets; or those operating in sin industries. 

What can you use the SBA Microloan for?

SBA Microloan terms are favorable, and you can use it for almost any business purpose. With lower loan amounts available at a lower interest rate, and no prepayment penalty, you can use an SBA Microloan to bridge a financing gap now, and pay it back as quickly as you want.

Many business owners have used microlending to finance working capital needs in a pinch, support upgrades and expansions for their businesses, or to kickstart new marketing and promotion initiatives. In particular, the SBA Microloan program is a great fit for:

• Working capital
• Equipment purchase
• Technology improvements
• Debt refinance
• Leasehold improvements

With the SBA Microloan, you’ll find an affordable and responsible small business loan and microlending options for smaller financing needs, and one-on-one support to help you every step of the way. How will you use your small business Microloan?

Please note that SBA Microloan proceeds cannot be used for payment of back taxes owed; settlements of lawsuits, trade disputes, fines, or penalties; or personal, non-business uses.

Learn how other business owners have used this program to fuel their ambition: