Microloans 101 - A flexible funding option

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Seattle District Office  - Sept. 28, 2021

u s small business administration
SBA microloans

In this newsletter, you can learn more about:


Microloans 101

What is a microloan? 

Microloans are smaller-sized loans of up to $50,000. SBA provides funds to specially designated intermediary lenders, which are nonprofit community-based organizations with experience in lending and technical assistance. These intermediaries administer the Microloan program for eligible borrowers.

How can you use microloan funds? 

Microloans can be used for a variety of purposes that help small businesses start or expand. Use them when you need less than $50,000 to rebuild, re-open, repair, enhance, or improve your small business. Examples include: 

  • Working capital
  • Inventory
  • Supplies
  • Furniture
  • Fixtures
  • Machinery
  • Equipment

Who can get a microloan?

Microloans are designed to help current and aspiring entrepreneurs who have trouble getting a regular loan because they're a startup, have limited collateral, have challenges with cash flow, or do not have enough industry experience. Microloans are designed for entrepreneurs who lack access to capital and need business counseling.

Where do you start?

Contact a local microlender: 

Business Impact NW serving businesses in Washington and Oregon

Mercy Corps Northwest serving businesses in Washington and Oregon

MoFi serving businesses in Idaho, Montana, Oregon, Utah, Washington, and Wyoming

New Roots Fund serving businesses in King County

SNAP Financial Access serving businesses in Spokane County

Ventures serving businesses in King County


SBA Awards $388,000 in PRIME Grants to 2 Washington Organizations to Help Emerging Micro-Entrepreneurs Gain Access to Capital

The U.S. Small Business Administration has awarded 27 organizations across the United States a total of $5.2 million under the Program for Investment in Micro-Entrepreneurs (PRIME) grant awards.

Two of the 27 organizations are based in Seattle, WA – Business Impact NW and Ventures received $200,000 and $187,900 in PRIME grants, respectively.

PRIME supports nonprofit organizations as they help low-income entrepreneurs get financing to establish and expand their small businesses by providing direct technical assistance, or provide capacity-building training for other organizations that provide capital to underserved small businesses.

Read More


Washington State Microloan Facts for 2020

7 microlenders completed

89 microloans totaling

$1,187,396

  • 54% went to businesses that were 51% or more women-owned
  • 39% went to White (non Hispanic) owned businesses 
  • 30% went to Black or African American-owned businesses
  • 14% went to Asian-owned businesses 
  • 8% went to White Hispanic-owned businesses
  • 1% went to Hawaiian-owned businesses 
  • 8% of loans didn't disclose demographic data 
  • The average loan size was $13,341

Upcoming Events

Tuesday, Sept. 28

8:30 a.m. | Grow with a Pro (Legal Professional) * 

9:30 a.m. | Instagram for Business * 

10 a.m. | How to Conduct and Market Your Business Online

2 p.m. | Become a Small Business Owner Through Franchising

3 p.m. | Entrepreneurial Summit 2021


Wednesday, Sept. 29

1 p.m. | Financial Basics for New Small Businesses

1 p.m. | Working Washington Grants: Border Business Relief Program


Thursday, Sept. 30

11 a.m. | Small Business Flex Fund Info Webinar * 


Friday, Oct. 1

9 a.m. | QuickBooks Online Basics You Need to Know * 

10 a.m. | Get Started

1 p.m. | Building a Formal Business Plan


Monday, Oct. 4

2 p.m. | Working Washington Grants: Border Business Relief Program


Tuesday, Oct. 5

8 a.m. | Tax and Business Basics for Self-Employed in Idaho

8:30 a.m. | Grow with a Pro (Banking Professional) * 

1 p.m. | Business Growth and Development Webinar


Wednesday, Oct. 6

8 a.m. | How to Improve Profit in Difficult Times

9 a.m. | Profit Mastery: COVID-19 Edition 2021 (7-week series)

9 a.m. | Intro to Business Live Webinar


Thursday, Oct. 7 

11 a.m. | Are You Ready to Start a Business?

12 p.m. | Let's Talk Business: How to Stop Sabotaging Your Success


Friday, Oct. 8 

8:30 a.m. | Marketing Strategy for Profit


Tuesday, Oct. 12

7 a.m. | 25th Annual BizFair (virtual)

8:30 a.m. | Grow with a Pro (Tax Professional) * 

3 p.m. | Go Global: Intro to Services and Funding for Exporting


Wednesday, Oct. 13

8 a.m. | Starting a Business in Idaho

9 a.m. | Small Business Requirements and Resources - Start a Business in WA

12 p.m. | Tax and Business Basics for Idaho Small Businesses

2 p.m. | Creating a Career & Life Portfolio


Thursday, Oct. 14

10 a.m. | The Basics of Child Support for Employers

11 a.m. | How to Write a Business Plan

11:30 a.m. | Business Expert Session: Leading with Confidence


Friday, Oct. 15

9:30 a.m. | Tax Essentials for New and Existing Business Owners

* SBA's participation or support is not an endorsement of any product, service, or entity.

Economic Injury Disaster Loans

For more information about funding options for small businesses impacted by COVID-19:

SBA.gov/eidl

 

Resources for Small Businesses

For more information about SBA resources to start, grow, and manage your business: 

Local Resource Guide

 

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