ProgramFinder: SBA Microloan

SBA Microloan

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Agency: U.S. Small Business Administration (SBA)

Program Description:
The SBA MicroLoan program provides very small loans to startup, newly established, or growing small business concerns. Under this program, SBA makes funds available to nonprofit community-based lenders (intermediaries) which, in turn, make loans to eligible borrowers in amounts ranging from $500 to $35,000. Applications are submitted to the local intermediary and all credit decisions are made on the local level.

Terms, Interest Rates and Fees

The maximum term allowed for a microloan is six years. However, loan terms vary according to the size of the loan, the planned use of funds, the requirements of the intermediary lender, and the needs of the small business borrower. Interest rates vary, depending upon the intermediary lender and costs to the intermediary from the U.S. Treasury.

Collateral

Each intermediary lender has its own lending and credit requirements. However, business owners contemplating application for a microloan should be aware that intermediaries will generally require some type of collateral, and the personal guarantee of the business owner.

Technical Assistance

Each intermediary is required to provide business based training and technical assistance to its microborrowers. Individuals and small businesses applying for microloan financing may be required to fulfill training and/or planning requirements before a loan application is considered.

Items to be submitted in loan package:

Complete business plan, including purpose of loan and description of business
Three-year financials and three-year business tax returns (for existing businesses)
Two-year forecast
Personal financial statement and three-year personal tax returns
For loans from $5,000 to $35,000, SBA will require a copy of a letter from a bank advising that they have rejected the business's request for a loan.

Program Region: Statewide

Program Contact(s):
Carolyn Welch
Connecticut Community Investment Corporation
2315 Whitney Avenue
Suite 2 B
Hamden, CT 06518
Phone: (203) 776-6172 Ext. 129
Fax: (203) 776-6837

William Tierney, Lender Relations Specialist
U.S. Small Business Administration
330 Main Street
Hartford, CT 06106
Phone: (860) 240-4894
www.sba.gov/services/financialassistance/sbaloantopics/microloans/index.html

Community Economic Development Fund
965 East Main Street
Meriden, CT 06450
Phone: (888) 835-2333 or (203) 235-2333
Fax: (203) 235-2913
info@cedf.com
www.cedf.com

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Agency Profile

Agency: U.S. Small Business Administration (SBA)

Mission: Maintain and strengthen the nation's economy by aiding, counseling, assisting and protecting the interests of small businesses and by helping families and businesses recover from national disasters.

Contact Information:
409 Third Street, Southwest
Suite 8800
Washington, DC 20416
Phone: (800) 827-5722
www.sba.gov/aboutsba/index.html

District Office:
Greta Johansson or Stephanie Scott
330 Main Street
Hartford, CT 06106
Phone: (860) 240-4672 Greta
Phone: (860) 240-4637 Stephanie
Fax: (860) 240-4659
www.sba.gov/localresources/district/ct/index.html

Regional Office:
10 Causeway Street, Room 265
Boston, MA 02222-1093
Phone: (617) 565-5590
Fax: (617) 565-5598
www.sba.gov

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