The SBA microloan program is the SBA’s option for smaller financing needs. It provides loans of up to $50,000 through nonprofit, community-based lenders — and it’s often the most accessible SBA path for newer or underserved businesses that don’t yet qualify for a larger bank loan.
How SBA microloans work
The SBA doesn’t lend microloan money directly. Instead, it funds intermediary lenders — nonprofit, mission-driven organizations (including many CDFIs) — which then make and service the loans. Each intermediary sets its own eligibility criteria, and many pair the loan with business training and mentoring, which can be as valuable as the capital for an early-stage owner.
What microloans can (and can’t) fund
Microloans are meant for the building blocks of a small business:
- Working capital
- Inventory and supplies
- Furniture and fixtures
- Machinery and equipment
They generally cannot be used to buy real estate or to refinance existing debt. For a building, look at SBA 504 loans; for refinancing or larger needs, SBA 7(a) or a term loan may fit.
Who SBA microloans suit
A strong fit for newer businesses
Because intermediaries are mission-driven and offer guidance, microloans often work for startups, women- and minority-owned businesses, and owners in underserved communities who need a modest amount and some support — exactly the borrowers conventional lenders are slowest to approve.
You’ll still need to show the intermediary that you can repay, and many ask for a personal guarantee or some collateral. But the bar is generally more flexible than a large bank loan, and the relationship is more hands-on.
How to apply
- Find an SBA microloan intermediary that serves your area. The SBA maintains a list of participating intermediaries by state.
- Prepare the basics — a simple business plan, your use of funds, and personal and business financials. Our documents checklist helps.
- Apply directly with the intermediary, which makes the credit decision.
A marketplace can also help you understand which SBA-friendly options fit before you apply.
Marketplaces that help compare SBA-friendly lenders. Listed alphabetically — not ranked.
| Provider | Type | Often suits | Visit |
|---|---|---|---|
| Fundera by NerdWallet Comparison marketplace covering SBA loans, lines of credit, and equipment financing. | Marketplace | SBA loan comparison | Visit Fundera by NerdWallet (opens in a new tab) |
| Lendio A free marketplace that matches one application to 75+ small-business lenders. | Marketplace | Comparing many lenders at once | Visit Lendio (opens in a new tab) |
Nevada microloan options
In Nevada, community lenders and the state’s Battle Born Growth (SSBCI) program offer microloans and similar support. See the Nevada section of our lender directory and our guide to SBA loans in Nevada.
The bottom line
An SBA microloan is the right tool when you need a modest amount — up to $50,000 — and would benefit from a lender that also offers guidance. It won’t buy a building or refinance debt, but for working capital, inventory, or equipment in a young business, it’s one of the most accessible options available. Confirm current terms with the intermediary before you apply.
Frequently asked questions
- How much can you borrow with an SBA microloan?
- Up to $50,000. The average microloan is smaller than the maximum, and amounts depend on the intermediary lender and your needs. They're designed for modest financing needs, not large purchases.
- Who makes SBA microloans?
- Not the SBA directly. Microloans are made through nonprofit, community-based intermediary lenders that the SBA funds. These intermediaries set their own eligibility and often provide business training and mentoring alongside the loan.
- What can an SBA microloan be used for?
- Working capital, inventory, supplies, furniture, fixtures, machinery, and equipment. Microloans generally cannot be used to buy real estate or to refinance existing debt.
Sources
Loan programs, rates, and eligibility change. We re-check sources on the “updated” date, but always confirm current terms directly with a provider.