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Under the Microloan program of the SBA, small loans are provided to start ups, newly established or growing businesses . The  funds are provided by SBA through non profit organizations (intermediaries), which then lend the money to eligible businesses in their area. The intermediaries also provide technical training and support to the businesses.   

The maximum amount that can be lent under the micro loan program is  US$35,000 and the average loan size is US$13000. The intermediaries are usually local organizations and take all the decisions regarding the microloans. The maximum duration of  a microloan is six years. Interest rates depend on the cost of the funds to the intermediary and can vary between 8 to 13 percent annually.

The actual terms of  the loan may vary according to the size of  the loan, the use of  funds  and the requirements of the lender.  Each intermediary may have their own criteria for sanctioning a loan. Usually some kind of collateral and personal guarantee from the owner of  the business is required. The intermediary provides training and technical assistance to the borrower based on the borrower's business needs. 

Small businesses who wish to apply  for micro loans can apply to microlenders in their area . Non profit organizations who wish to work as micro lenders can apply to the SBA for information. They should have at least one years experience in making and servicing short term loans to small businesses.