Eligibility Requirements for Microloans
All businesses are qualified apply for a Microloan from American Business Financing.
Most types of small for-profit businesses are eligible for this program. The form of the business, be it a corporation, partnership, or sole proprietorship, is not the determining factor. The size of the business is more of a factor.
Small Office / Home Office. Best suited for smaller or newer businesses needing working capital. This program has less stringent personal credit requirements of the owners.
Growth Accelerator Assistance Program. Larger amounts for more established businesses seeking a quick source for working capital. Due to the larger loan amounts this program has stricter credit requirements.
Use of Proceeds for Microloans
The proceeds may be used to acquire a business or franchise, for working capital or the purchase or inventory, supplies, furniture, fixtures, machinery, and/or equipment, but may not be used to pay existing debts or purchase real estate.
Loan Amounts & Terms for Microloan
Small Office / Home Office loan amounts:
- $ 5,000
- $ 7,500
- $10,000
- $12,500
Growth Accelerator Assistance Program.
The maximum term for repayment of a Microloan is six years. The actual loan terms may vary, based on several factors, including the size of the loan, the planned use of the proceeds of the loan, and the needs of the borrower.
The SBA does not guarantee these loans. Microloans are delivered through specially designated and locally-based intermediary lenders. American Business Financing�s bank is one of only 13 companies to be approved as a non-bank United States Small Business Administration (SBA) Lending Company in the country. We can & do loan money to small businesses in all 50 states.
Collateral for Microloans
Although a Microloan is fairly small compared to other types of loans, nevertheless American Business Financing may still require some sort of collateral in addition to the personal guaranty of the business owner.
Credit Requirements for Microloans
American Business Financing sets the credit requirements for borrowers under the Microloan Program. An applicant will be expected to have good character, a strong commitment to the business idea, along with a credit history providing reasonable assurance of the ability to repay. In addition, the applicant should have some management expertise or be willing to participate in training to strengthen his or her management skills.
Technical Assistance for Microloans
American Business Financing�s lender is a nonprofit community-based organization with experience in lending and technical experience. They not only provide loans, but also offer management and technical services for the borrowers.
Applying for a Microloan
The first step in applying for a Microloan is to complete our online real-time PreQualification form.
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