The microloan program of the SBA provides financial and technical assistance to small businesses.
Through this program, loans up to $250,000 are accessible with a 6% (600 bps) rate over a 3yr term.
A federal tax ID is necessary to demonstrate the company's overall financial health.
The typical loan terms range from 6 to 36 months for $5,000 to $50,000.
Huntington National Bank, Live Oak Banking Company, Celtic Bank Corporation, and Wells Fargo Bank are a few lenders for SBA microloans.
The SBA anticipates that the interest rate will stay at same level like 2020 for new microloans.
You can still obtain a microloan from the SBA even if you don't meet the requirements for the highest rate.
With 1,843 loans approved for a total of $600,616,000, Wells Fargo is the 2nd most active SBA lender for 7(a) loans.
SBA 7(a) loans are available from Harvest Small Business Finance for commercial real estate transactions.
The SBA's 504 and 7(a) programs are both supported by loans from Commonwealth Business Bank.