The SBA Microloan program funds smaller loans through nonprofit community-based intermediary lenders, capped well below the 7(a) and 504 programs’ typical loan sizes.
How it works
Standard loan amortization applied to the loan amount, interest rate, and term gives the monthly payment; multiplying that by the number of payments and subtracting the loan amount gives total interest paid.
What this does not include
This does not include the technical assistance and business counseling many microloan intermediaries require or offer alongside the loan itself, which is a distinguishing feature of the program beyond financing terms alone.
How to use this calculator
- Enter the loan amount, interest rate, and term in months.
Frequently asked questions
Who actually lends the microloan money?
Not the SBA directly — it lends funds to designated nonprofit intermediary lenders, who then make the actual microloans to small businesses and set the specific interest rate within SBA guidelines.
Why is the maximum loan amount so much smaller than a 7(a) loan?
The program specifically targets very small businesses and startups needing modest working capital or equipment funding, a different market than the larger loans 7(a) and 504 typically finance.
Can microloan funds be used to buy real estate?
No — microloan funds are generally restricted from real estate purchases, unlike 504 loans, which are specifically designed for that purpose.
