If you’re an entrepreneur — particularly a solopreneur — and require only a few thousand dollars to finance a project, consider an SBA micro loan.
What is a micro loan? In short, SBA micro loans are issued by non-profit, community-based organizations with experience in lending. You can borrow up to $50,000, but the average micro loan issued is $13,000.
Though SBA-backed micro loans can be used to fund a variety of projects, they cannot be used to acquire real estate or to refinance existing debt.
Interest rates vary, but in general, fall with the 8% to 13% range.
Loan Amount
Up to $50,000
Interest Rate
8% – 13%
Term
6 years
Time to Funding
30-60 days