Last updated: October 14, 2026
Need about $13,000 for equipment or inventory? A microloan may fit. The SBA says microloans go up to $50,000, and the average is about $13,000. You do not apply to the SBA itself. You apply to a local nonprofit lender the SBA funds, called an intermediary. Find yours first, then build your file around what it asks for.
Start with the intermediary near you, not with a stranger who calls you.
What an SBA microloan is
The SBA gives money to "specially designated intermediary lenders." These are nonprofit, community-based groups with lending experience. Many also offer business coaching. They make the loans to you.
The numbers below come from the SBA microloan page. The cap is $50,000. The average loan is about $13,000. Rates vary by lender but are generally 8% to 13%. The longest repayment term allowed is seven years. Your own amount, rate and term are set by the intermediary, not the SBA.
| Item | What the SBA says | What it means for you |
|---|---|---|
| Who lends | SBA-approved intermediary lenders | You apply to a local nonprofit |
| Loan cap | Up to $50,000 | Ask for what you need, not the max |
| Average size | About $13,000 | Small loans are normal here |
| Interest rate | Varies, generally 8% to 13% | Compare offers in writing |
| Longest term | Seven years | Your term may be shorter |
| Credit decision | Made by the lender | The lender sets all terms |
How to get an SBA microloan, step by step
- Check the basics. Your business must operate for profit, be located in the U.S., and be small under SBA size rules.
- Open the SBA list of microlenders and filter by your state.
- Call or email two or three intermediaries. Ask what they serve and what they need from you.
- Write down your amount and exactly what it will buy.
- Gather the documents the intermediary lists.
- Apply with the intermediary and ask about any coaching it offers.
- Read the terms before you sign. Check the rate, term, payment and any fees.
Who qualifies
The SBA lists five basics. A business must:
- Not be a type of ineligible business
- Be an operating business
- Operate for profit
- Be located in the U.S.
- Be small under SBA size requirements
Some not-for-profit childcare centers can also qualify. Each intermediary adds its own credit rules. Ask them directly.
What the money can and cannot pay for
The SBA lists working capital, inventory, supplies, furniture, fixtures, machinery and equipment. Microloan money cannot pay existing debts. It cannot buy real estate either.
So a microloan is not a way to pay off an old advance. If that is your problem, read merchant cash advance alternatives.
Documents to gather
Each intermediary sets its own list. Common asks include a short business plan, recent bank statements, tax returns, and a plan for the money. The SBA has a business plan guide. See also what documents do I need for a business loan.
A hypothetical example
Here's a hypothetical. Rosa runs Pine Street Tamales (a made-up business). She needs a second freezer and a stand mixer. She finds two intermediaries in her state on the SBA list. One offers coaching on pricing. She asks each for a written rate, term and payment. She picks the one whose payment fits her slow months.
If you are turned down
Ask why. Ask what would change the answer. Some intermediaries will work with you on a plan and let you come back. Read business loan denied: what to do next.
Apply with the intermediary, not a cold caller
Real microlenders are listed on SBA.gov. If someone calls and says they can "get you an SBA microloan" for a fee, check the SBA list first. You can apply directly. See business funding without a broker and stop MCA broker calls.
Other options
- How to qualify for an SBA loan
- Bad credit business loans
- Small business grants
- How to apply for a small business grant
Compare every option in one place: where to get business funding.
Sources
- SBA, Microloans: https://www.sba.gov/loans/microloans/
- SBA, List of microlenders: https://www.sba.gov/loans/microloans/list-of-microlenders/
- SBA, Plan your business: https://www.sba.gov/counseling/plan-your-business/#business-plan