This week marks 25 years since the U.S. Small Business Administration (SBA) launched its Microloan Program. The program is designed to support microlending to businesses throughout the United States by providing loan capital and grants. The aim is to provide small businesses, otherwise unable to secure capital, with the financial support required to grow their businesses and create and retain jobs.
Having access to low interest funding is a challenge many small businesses face. As is having the right technical knowledge and assistance required to operate, manage and develop a successful business.
As well as providing small businesses with vital low interest loans of up to $50,000, the SBA’s Microloan Program provides small ventures with invaluable technical assistance before and after they receive their loans in order to improve operations and proficiently manage growth.
In an SBA blog post, Bill Manger, Associate Administrator for the Office of Capital Access at the SBA, advised small businesses struggling to secure finance to investigate the Microloan Program.
“Any entrepreneur who has ever been declined for a loan should find a local SBA microloan intermediary in their community and give them a try. Loans are anywhere from $500 to $50,000 and may be used for working capital, materials, supplies, equipment and inventory,” said Manger.
Looking back at the SBA Microloan Program
In its 25 years in operation, the SBA’s Microloan Program has issued more than 69,000 loans. The average size of these loans is $12.386. A large proportion of borrowers are Main Street moms and dads that typify the essence of the community.
As the success of the SBA Microloan Program testifies, small, low interest loans can make a huge impact to the success of an entrepreneur’s business venture, which in turn helps to create a stronger economy with a greater number of jobs.
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This article, “SBA Microloan Program Celebrates 25 Years” was first published on Small Business Trends