About the program
The Microloan Program provides very small loans to startup, newly established, or growing small-business ventures. Under the program, SBA makes funds available to nonprofit community based lenders, or intermediaries which make loans up to $35,000, with the average loan size at about $13,000. All credit decisions are made on the local level. Terms, interest rates and fees
The maximum term allowed for a microloan is six years. Loan terms vary according to the size of the loan, the planned use of funds, the requirements of the intermediary lender, and the needs of the small-business borrower. Interest rates vary, depending upon the intermediary lender and costs to the intermediary from the U.S. Treasury. Generally the rates are between 8 and 13 percent. Definitions
→Collateral: Business owners contemplating application for a microloan should be aware that intermediaries generally will require some type of collateral and the personal guarantee of the business owner. →Technical assistance: Each intermediary is required to provide business-based training and technical assistance to its microborrowers. Individuals and small businesses applying for microloan financing may be required to fulfill training and/or planning requirements before a loan application is considered.
Oklahoma Microloan centers
→Greenwood Community Development, Tulsa →Little Dixie Community Action, Hugo →Rural Enterprises of Oklahoma Inc., Durant →Tulsa Economic Development Corp., Tulsa SOURCE: Small Business Administration