People often wonder if there is a difference between a microenterprise loan and a small business loan. They are basically the same, just different sizes.
The UMLF is currently making loans of between $25,000 and $50,000 using the SBA’s Microloan Program.
> Loan Amount: up to $50,000
> Areas of Availability: Statewide
> Maximum Repayment Term: 6 years
> Interest Rate: Prime Rate plus 5%-7%
> Processing Time: three to six weeks
This loan requires you to prepare and present a thorough business plan, including financial projections.
SBA Microloan Program
SBA’s Microloan Program provides small businesses with small short-term loans for working capital or the purchase of inventory, supplies, furniture, fixtures, machinery and/or equipment. The SBA has made funds available to the UMLF, a specially designated intermediary lender, which is a nonprofit organizations with experience in lending and technical assistance. The UMLF then makes loans to eligible borrowers in amounts up to a maximum of $50,000. Applications are submitted to the local intermediary and all credit decisions are made on the local level.