At GlobeLiveMedia we explain how to access the SBA microloan program for small businesses and how much these financing can be, so that you can evaluate if they can help you grow your business in the US.
The microloan program of the United States government is a federal plan that consists of granting small financing to newly established companies or companies in the growth stage, becoming one of the main economic levers that small entrepreneurs in the US have. .
Here’s how this program works: The US Small Business Administration (SBA) delivers funds to nonprofit community lenders (also known as local brokers), who deliver the money to eligible borrowers.
The maximum amount of these loans is $35,000 dollars, according to the information released by GovLoans.gov, although it can vary depending on the needs of each enterprise, and the interest that this type of financing handles usually ranges between 8% and 13%.
All applications for this type of loan are made through local brokers, who independently set their own loan and credit requirements.
In general, one of the unavoidable requirements that every business owner or microentrepreneur must meet is to offer some type of guarantee to the intermediary that guarantees the payment of the financing in a certain term (usually, the maximum time allowed for a microloan is six years old).
How can I access the microloan program if I have a small business in the US?
In order to access this program, you must contact the intermediaries in the area in which you are located. These intermediaries are also able to offer technical assistance to small businesses.
You can contact the program through the telephone number 1-800-659-2955 for more information about the possible community intermediaries that you can consult for the application of microloans.
You can also use the Lender Match program to connect you to the right lenders for your small business. With this program, you must explain the financial needs of your startup or small business, compare interest rates and terms, as well as submit the application and documentation required for financing.
However, it should be noted that these types of loans cannot be used to pay existing debts or to buy real estate. Instead, the funds must be used to:
1) Working capital.
2) Inventory.
3) Supplies.
4) Furniture.
5) Facilities.
6) Machinery.
7) Equipment.