The Micro SBA Loan Program

SBA

There are many different SBA loan programs beyond the loan guarantee program, which they are most famous for. One such program is the micro loan program. These funds are made available in small amounts for a short period of time to smaller companies, and also for non-profit daycare companies. The way you can use the funds is also limited, as we will outline below.

One way you can use these funds is for working capital. Essentially, this would be a short-term SBA loan to replace the need for getting a line of credit or business credit card. Another possible use would be for the purchase of necessary supplies for your company’s inventory. This is not to be confused with equipment. You could also use the funds to pay for equipment and tools necessary for the operation of your company, as well as to pay for office furniture, lighting, etc.

The loans are disbursed through nonprofit, community-based organizations that have experience with lending. They are required to offer technical assistance and training to the borrowers, as part of the program. The goal of this SBA loan program, and many others like it, is to strength local communities and companies that operate out of those communities. The terms and conditions of each loan depend on how much is being borrowed, how you are planning on spending the funds, and any requirements set in place by the direct lender. All of this, coupled with your needs, will be considered when setting conditions for interest, payments, etc.

For more information, go to SBA Loan at http://www.unsecuredbizloan.com/sba-loan/

The Micro SBA Loan Program was last modified: November 8th, 2011 by Amit Kraidman
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