Frequently Asked Questions

Frequently Asked Questions


Q: What are the requirements for a microloan?

A:  Your business must be in located in an area serviced by a microloan lender, you must have a complete loan package and supporting documentation, you must be denied by 2 financial institutions, and provide copies of the denial letter, if the loan request is over $20,000. Most programs have loans that are made on a secured-basis with personal guarantees, sometimes including collateral and/or a co-signer. The borrower will pay loan closing costs and filing fees. Credit requirements and other criteria for approval are as outlined on page 3 of this free report.

Q:  Is the microloan the same as a grant?

A:  No, the microloan is not a grant.  The loan will be required to be repaid over a period up to 10 years.

Q:  Is the microloan program only for existing businesses?

A:  The microloan program is for startups as well as existing businesses.

Q:  Does my credit score matter in obtaining a loan?

A:  Microloans aren’t determined based on your credit scores alone.  However, your credit does play a factor in the approval process, and can be the basis for being denied.  Micro-lenders review the overall package (credit, business concept/plan, financial information, collateral, and use of proceeds), and not just credit scores.

Q:  Is the microloan program for women and minorities only?

A:  The microloan program is open to everyone.  Ethnicity and gender is not a factor when applying for a microloan.  There are, however, special programs to targeting women, veterans and those with disabilities.

Q:  Am I guaranteed funds if I’m denied by two (2) banks and have a business plan?

A:  Unfortunately, being denied by two (2) banks does not guarantee acceptance to our microloan funds. The two (2) letters of denial (required if your loan request is over $20,000) by commercial banks or credit union is a requirement by the SBA to be eligible for the program. There is still an application process to determine if applicants are approved for the funds.