SBA Microloan Program
An even more affordable, fast funding option for established businesses
Sometimes it only takes a small boost of capital to get your business on track for success. In these cases, the SBA Microloan program is the perfect fit for your business. With an SBA microloan lender like Pursuit, you’ll be able to take advantage of a fast and efficient application and approval process, with lower interest rates and fees, and a longer term to keep your monthly payments affordable.
The SBA Microloan program can be used for nearly any business financing need, from working capital, to refinancing high-cost debt, to equipment upgrades and more. Restaurants, wellness centers, architecture firms, manufacturers, brick-and-mortar retail stores and others have all used SBA microloan lenders to get business funding when growth is on the horizon.
Reduced interest rate
Approved loans funded in one week
No prepayment penalty
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:
The SBA Microloan program is administered by Pursuit Community Finance.
Ready to fund your dream? Learn more about our small business loan application process and get started today.