MicroLoan Program: Difference between revisions
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In the United States, the '''MicroLoan Program''' is a program administered by the [[Small Business Administration]] (SBA). |
In the United States, the '''MicroLoan Program''' is a program administered by the [[Small Business Administration]] (SBA). Since 1992, the MicroLoan Program has provided [[microloan]]s to start-up, newly established, or growing small business endeavors. |
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Under this program, SBA makes funds available to non-profit community based lenders (intermediaries) that in turn, make loans to eligible borrowers in amounts up to a maximum of $50,000. The average loan size is about $13,500. Applications are submitted to the local intermediary and all credit decisions are made on the local level. The maximum term allowed for |
Under this program, SBA makes funds available to non-profit community based lenders (intermediaries) that in turn, make loans to eligible borrowers in amounts up to a maximum of $50,000. The average loan size is about $13,500. Applications are submitted to the local intermediary and all credit decisions are made on the local level. The intermediary also assists by providing technical and management assistance. The maximum term allowed for an SBA micro-loan is six years. Loan terms, however, 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 on the intermediary lender and costs to the intermediary from the [[United States Department of the Treasury|U.S. Treasury]]. |
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== References == |
== References == |
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*{{CRS|article = Report for Congress: Agriculture: A Glossary of Terms, Programs, and Laws, 2005 Edition|url = http://ncseonline.org/nle/crsreports/05jun/97-905.pdf|author= Jasper Womach}}{{dead link|date=April 2016}} |
*{{CRS|article = Report for Congress: Agriculture: A Glossary of Terms, Programs, and Laws, 2005 Edition|url = http://ncseonline.org/nle/crsreports/05jun/97-905.pdf|author= Jasper Womach}}{{dead link|date=April 2016}} |
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*[https://www.fundera.com/blog/2015/08/31/the-macro-on-microloans-are-they-the-best-financing-option-for-your-business/ Financial Dictionary & SBA Terminology]{{dead link|date=April 2016}} |
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== External Links == |
== External Links == |
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Revision as of 14:39, 17 May 2016
In the United States, the MicroLoan Program is a program administered by the Small Business Administration (SBA). Since 1992, the MicroLoan Program has provided microloans to start-up, newly established, or growing small business endeavors.
Under this program, SBA makes funds available to non-profit community based lenders (intermediaries) that in turn, make loans to eligible borrowers in amounts up to a maximum of $50,000. The average loan size is about $13,500. Applications are submitted to the local intermediary and all credit decisions are made on the local level. The intermediary also assists by providing technical and management assistance. The maximum term allowed for an SBA micro-loan is six years. Loan terms, however, 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 on the intermediary lender and costs to the intermediary from the U.S. Treasury.
References
This article incorporates public domain material from Jasper Womach. Report for Congress: Agriculture: A Glossary of Terms, Programs, and Laws, 2005 Edition (PDF). Congressional Research Service.[dead link]- Financial Dictionary & SBA Terminology[dead link]
External Links
- "microloan program". www.sba.gov. Retrieved April 2, 2016.