The SBA is courting credit unions and other lenders to use its expanded micro loan program now that an additional $50 million has been made available under the American Recovery and Reinvestment Act.
An additional $24 million in technical assistance is also available for lenders. The agency said the program is shifting to funding provided under the Recovery Act now that it has exhausted the regular FY 2009 appropriations for $20 million in loans and $20 million in technical assistance.
The SBA's micro loan program provides the agency-backed micro lenders with up to $3.5 million in loans and up to $35,000 for working capital and acquisition of materials, supplies, furniture, fixtures and equipment. The interest rate is based on the five-year Treasury rate, with adjustments tied to a micro lender's average loan size. The SBA's reimbursement is capped at 25% of the micro lender's outstanding SBA loan portfolio.
Recommended For You
Since the Recovery Act, the SBA said it has approved eight new applications from lenders to join the micro loan program. Fifteen new loans totaling $10.7 million in recovery funds are ready to be disbursed, the agency noted.
© 2025 ALM Global, LLC, All Rights Reserved. Request academic re-use from www.copyright.com. All other uses, submit a request to [email protected]. For more information visit Asset & Logo Licensing.
