SBA Microlending
The Iowa Center is certified as a Microlender by the US Small Business Administration. Through the microloan program, The Iowa Center provides loans up to $50,000 to support entrepreneurs who want to launch or grow their small business.
What is an SBA Microloan?
The microloan program provides loans up to $50,000 to help small businesses start up and expand. The average SBA microloan nationally is about $13,000.
Under the microloan program, the SBA provides funds to nonprofit community-based organizations who have received designation as intermediary lenders. These organizations have experience in lending as well as management and technical assistance. These intermediaries administer the Microloan program for eligible borrowers.
MICROLOAN USES
Microloans can be used for a variety of purposes that help small businesses expand. These loans are a good option for entrepreneurs who need $50,000 or less to rebuild, re-open, repair, enhance, or improve their small business.
Uses include:
- Working Capital
- Inventory
- Supplies
- Furniture
- Fixtures
- Machinery
- Equipment
Proceeds from an SBA microloan cannot be used to pay existing debts or to purchase real estate.
Application Process
Are you interested in learning more about applying for an SBA Microloan through The Iowa Center? Schedule an appointment today.
Loan Transparency
We believe in full transparency about our loan terms. Here’s everything you need to know about our loan offerings.
Loan Details:
- Loan Amount Range: $1,000 – $50,000
- Interest Rate: 6% (flat rate, never changes)
- Loan Term: Up to 60 months (5 years)
- Processing Fee: 1% of the approved loan amount (Only charged if loan is approved)
- Example: $500 fee for a $50,000 loan
- Example: $100 fee for a $10,000 loan
Additional Information:
- Prepayment Penalties: None. You can pay off your loan early without extra fees.
- Funding Time: 1-2 weeks after loan approval
- First Payment: Due within 60 days of loan disbursement
- Credit Reporting: We report payments to Experian
