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Microlenders

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Definition:

A microlender is an organization that makes business loans to individuals who are not able to obtain financing from traditional lenders. Microlenders typically charge higher-than-average interest rates; their maximum loan is usually $25,000 or less. Recipients of micro-loans are typically individuals in poverty or in development zones in the U.S., or who live in developing nations.

The SBA Microloan Program provides very small loans to new businesses or for small business growth.

The program works through non-profit community based lenders (intermediaries) who make loans of up to $35,000.
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