Small business owners may be able to obtain a microloan that is guaranteed by the Small Business Administration to help them afford certain costs of running their business. Microloans are usually much smaller in amount, in the case of SBA loans, the maximum amount is $35,000 and according to the SBA website the average loan is about $13,000, but these loans can be beneficial in a variety of ways ranging from being used as working capital to buying equipment.
Microloans also usually come with technical assistance that is provided by the institution making the loans, or the intermediary, between the small business and the Small Business Administration. Usually these intermediaries will provide assistance or training for a microloan borrowers, which can be of great assistance to business owners who may have questions, are in need of assistance or have little experience.
There are also reasonable interest rates on these guaranteed loans and many loans backed by the Small Business Administration are often easier to obtain as lenders may be more willing to loan money if it is guaranteed by the SBA. While not every business owner may qualify a microloan guaranteed by the SBA, a microloan may be an option for businesses that need a small amount of capital in order to grow or expand their company.
While there are a number of qualifications a business owner must meet, anyone who might be interested in micro-loan for their small business should check out the small business administration’s website to see about not only obtaining one of these microloans but a small business owner may also be able to take advantage of some of the additional services that the small business administration offers as well.