Microloan Program

To assist women, low-income, and minority entrepreneurs, business owners, and other individuals possessing the capability to operate successful business concerns and to assist small business concerns in those areas suffering from a lack of credit due to economic downturns.

Under the Program, the
Small Business Administration (SBA) will make loans or provide guaranties to private, non-profit, and quasi-governmental organizations (intermediary lenders) that will use the loan funds to make short-term, fixed interest rate microloans in amounts up to $50,000 to start-up, newly established, and growing small business concerns.

These microloans are to be used exclusively for working capital, inventory, supplies, furniture, fixtures, machinery, and/or equipment.

In addition, the SBA will make grants to participating intermediary lenders to provide marketing, management, and technical assistance to prospective borrowers and borrowers receiving microloans.

Under the Program, SBA will also provide training for intermediary lenders participating in the Program.
Related Programs59.011 Small Business Investment Companies; 59.012 7(a) Loan Guarantees; 59.041 504 Certified Development Loans

Agency - Small Business Administration

The Small Business Administration maintains and strengthens the nation's economy by aiding, counseling, assisting and protecting the interests of small businesses and by helping families and businesses recover from national disasters.

Office - See Regional Agency Offices.

See Appendix IV of the Catalog of Federal Domestic Assistance under Small Business Administration.
Website Address

http://www.sba.gov




Selected Recipients for this Program


RecipientAmount Start DateEnd Date
Mainestream Finance $ 45,859   2019-07-302020-06-30
Iowa Foundation For Microenterprise And Community Vitality $ 81,076   2019-07-012020-06-30
New Bedford Economic Development Council, Inc. $ 89,616   2019-07-182020-06-30
People Incorporated Of Virginia $ 254,480   2019-07-012020-06-30
Access To Capital For Entrepreneurs, Inc. $ 345,935   2019-07-012020-06-30
Ne South Dakota Economic Corporation $ 65,000   2019-07-012020-06-30
Community Equity Investments, Inc. $ 71,010   2019-07-012020-06-30
Community Capital Of Vermont, Inc. $ 148,000   2019-08-192020-06-30
Cdc Small Business Finance Corp. $ 457,006   2019-07-012020-06-30
Accion/chicago, Inc. $ 41,647   2019-07-012020-06-30



Program Accomplishments

Fiscal Year 2016: No data available. Fiscal Year 2017: No current data available. Fiscal Year 2018: No data available.

Uses and Use Restrictions

Loans to intermediaries with terms and restrictions as provided in Public Laws 102-140, 102-366 and 105-135 and subsequent regulations as published in the Federal Register.

Eligibility Requirements

Applicant Eligibility

An applicant is considered eligible to apply if it meets the definition of an intermediary lender as published in program materials, 13 CFR, and PL 102-140, and meets published minimum experience and capability requirements.

Beneficiary Eligibility

Small businesses, minority entrepreneurs, nonprofit entities, business owners, women and low-income, and other individuals possessing the capability to operate successful business concerns.

Credentials/Documentation

An entity may apply to SBA to become an Intermediary lender. A small business may apply to an intermediary for a microloan. Small business seeking funding must: (1) Meet SBA size standard requirements as defined in Chapter 13 of the U.S. Code of Federal Regulations; (2) meet type of business requirements as published by SBA; and (3) meet lending requirements of local intermediary lenders. This program is covered under 2 CFR 200, Subpart E - Cost Principles. This program is excluded from coverage under 2 CFR 200, Subpart E - Cost Principles.

Aplication and Award Process

Preapplication Coordination

Preapplication coordination is not applicable.

Environmental impact information is not required for this program.

This program is excluded from coverage under E.O.

12372.

Application Procedures

This program is excluded from coverage under 2 CFR 200, Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards. Microloan Borrowers: Apply directly to intermediary lenders. Intermediary Lenders: Apply to the SBA Office of Economic Opportunity prior to deadlines and according to established procedures.

Award Procedures

Intermediaries are notified by SBA. Microborrowers are notified by the intermediaries.

Deadlines

Contact the headquarters or regional office, as appropriate, for application deadlines.

Authorization

Small Business Act, Section 7(m) (15 U.S.C. 636(m)) , Public Law 105-135.

Range of Approval/Disapproval Time

Loan applicants can expect an answer from the SBA approved intermediary lender within 15 days from the date of application acceptance.

Appeals

Decisions on the part of the SBA are final. SBA will not become involved in appeals by microborrowers to intermediary lenders except in the case of suspected violation of Federal regulations.

Renewals

Based on performance.

Assistance Considerations

Formula and Matching Requirements

This program has no statutory formula. This program has no matching requirements. The outstanding balance of loans from SBA to intermediary lenders may not exceed $5 million at any point in time. Grant awards from SBA to intermediary lenders may not exceed 25% of intermediary lender?s outstanding loan balance to SBA. Loans from SBA to the intermediary lender require that the intermediary lender contribute not less than 15% of the loan amount from non-Federal sources. Grants from SBA to intermediary lenders require that the intermediary contribute not less than 25% of the grant amount from non-Federal sources. Bonus Grants to ?specialized intermediaries? do not require a matching funds contribution from the intermediary lender.This program does not have MOE requirements. This program does not have MOE requirements.

Length and Time Phasing of Assistance

The maximum life of a loan to an intermediary lender is 10 years. Grants award amounts are based on the total outstanding balance of loans made to the intermediary lender by SBA and by the annual microloan production of the intermediary lender. See the following for information on how assistance is awarded/released: Additional detail available at https://www.sba.gov/sites/default/files/sops/SOP-52-00-A-Microloan.pdf and at SBA's website at www.sba.gov. See the following for information on how assistance is awarded/released: Additional detail available at SBA's website at www.sba.gov.

Post Assistance Requirements

Reports

Additional detail available at https://www.sba.gov/sites/default/files/sops/SOP-52-00-A-Microloan.pdf and at SBA's website at www.sba.gov.

Information available at www.sba.gov.

See information at www.sba.gov.

Additional detail available at SBA's website at www.sba.gov.

Information available at SBA's website at www.sba.gov.

Information available at www.sba.gov.

See information at www.sba.gov.

Additional detail available at SBA's website at www.sba.gov.

Information available at SBA's website at www.sba.gov.

Audits

In accordance with the provisions of 2 CFR 200, Subpart F - Audit Requirements, non-Federal entities that expend financial assistance of $750,000 or more in Federal awards will have a single or a program-specific audit conducted for that year. Non-Federal entities that expend less than $750,000 a year in Federal awards are exempt from Federal audit requirements for that year, except as noted in 2 CFR 200.503. Required annually.

Records

Systems sufficient to generate accurate and acceptable reports.

Financial Information

Account Identification

73-1154-0-1-376.

Obigations

(Advisory Services and Counseling) FY 16 $24,340,000; FY 17 est $31,000,000; and FY 18 est $25,000,000. (Direct Loans) FY 16 $35,000,000; FY 17 est $44,000,000; and FY 18 est $36,000,000

Range and Average of Financial Assistance

No data available.

Regulations, Guidelines, and Literature

Contact the SBA Office of Economic Opportunity, Microenterprise Development Division, 409 3rd Street S.W., Mail Code 7881, Washington, DC 20416.

Information Contacts

Regional or Local Office

See Regional Agency Offices. See Appendix IV of the Catalog of Federal Domestic Assistance under Small Business Administration.

Headquarters Office

Daniel Upham 409 3rd St., SW 8th Floor Office of Economic Opportunity Microenterprise Development Division, Washington, District of Columbia 20416 Email: daniel.upham@sba.gov Phone: 202-205-7001

Criteria for Selecting Proposals

Applications are evaluated individually. Each is rated on its own merits or, in the case of an affiliated group, on the merits of each of the organizational parts that make up the whole. Qualitative and quantitative information regarding the applicant is reviewed. Criteria include but may not be limited to: (1) Experience level of Organizational Officers, Directors and personnel to be active in the Microloan Program operation; (2) Financial strength of the applicant organization; (3) Knowledge of the local economy; (4)Lending/loan performance; (5) Current and proposed technical assistance program; (6) Current and Proposed market to be served; (6) Availability and probability of matching contributions; and (7) Information submitted in the grant application package.



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