SBA Microloan, a 7(m) Loan Program

The SBA Microloan program provides franchises and other small businesses with loans of up to $35,000 with maximum six-year terms. In many cases, borrowers must complete planning requirements and training prior to applying for a microloan. Microloans cannot be used to pay existing debts or purchase real estate. Mircoloans are granted on the local level through intermediaries. An intermediary is a non-profit, community-based lender that has been granted funds by the SBA. Intermediaries also provide their borrowers with business-based training and technical assistance. Microloans are not guaranteed by the SBA; the program is available in selected locations in most states.