Microloan Demonstration Program

What are the aims of the Microenterprise Development Grants?

Microenterprise Development Grants aim 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 Microenterprise Development Grants, 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 $35,000 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.

In addition, the SBA will make grants to non-profit organizations, which are not intermediary lenders, to provide marketing, management, and technical assistance to low-income individuals seeking private sector financing for their businesses. Under the Microenterprise Development Grants, SBA will also provide training for intermediary lenders and non-lenders participating in the Program.

Who are eligible to apply for the Microenterprise Development Grants?

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.Small businesses, minority entrepreneurs, nonprofit entities, business owners, women and low-income, and other individuals possessing the capability to operate successful business concerns may all apply for the Microenterprise Development Grants.

Where to Apply for Microenterprise Development Grants?

Microloan Borrowers: Apply directly to intermediary lenders. Intermediary Lenders: Apply to the SBA Office of Financial Assistance prior to deadlines and according to established procedures.

For more information on Microenterprise Development Grants, contact:

SBA Executive Secretariat 409 3rd. Street, SW , Washington, District of Columbia 20416
Phone: 1-800-827-5722
Email: SBAExecSec@sba.gov
Web Site Address: http://www.sba.gov

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