Microloans, Major Impact
The SBA Microloan Program continues to play a critical role in fueling America’s smallest businesses. Designed for startups, solopreneurs, and underserved founders, this program connects entrepreneurs with capital through nonprofit lenders—unlocking funding that traditional banks often overlook.
This June 2025 mid-year bulletin breaks down who’s getting funded, how much, and what industries and states are thriving under the program. If you’re evaluating your funding options or navigating a tight lending environment, this report offers data-driven direction.
What is an SBA Loan?
An SBA loan is a small business loan partially guaranteed by the U.S. Small Business Administration, created to help entrepreneurs access funding that might be out of reach through traditional banks. Popular programs include the SBA 7a, 504, and the Microloan program, each offering flexible terms and support to help businesses launch, grow, or recover.
Top States for SBA Microloan Activity
By Loan Count
RankStateLoans Approved1Ohio6142New York3643Pennsylvania1854Kentucky1545Maryland153
By Loan Volume
💡 Insight: Ohio dominates by number of microloans thanks to high-volume lenders like ECDI, while New York leads in overall capital deployed.
Top Industries Receiving SBA Microloans
By Approval Count
By Loan Volume
💡 Insight: Retail, food service, and logistics dominate SBA Microloan demand. These sectors often face cash flow challenges, making them ideal microloan candidates.
Startup vs. Established Business Performance
Business TypeLoan CountFunding AmountExisting Businesses2,599$37.7MStartups916$17.9M
💡 Insight: Startups account for 1 in 4 SBA Microloans and receive a higher share of funding than their volume would suggest—highlighting their viability under this program.
Top SBA Microloan Lenders (June 2025 YTD)
💡 Insight: Loan size varies widely. ECDI prioritizes access over size, while Bankable serves larger, more capital-ready applicants.
How to Apply for an SBA Microloan
Find a Lender: Use SBA’s Lender Match to locate approved intermediaries.
Write a Business Plan: Be clear on how funds will be used and repaid.
Gather Docs: Tax returns, profit & loss, personal financials.
Attend Coaching: Many lenders require technical assistance before approval.
Apply Directly: Submit your application through the intermediary (not directly to SBA).
SBA Microloan Requirements
Max Loan Size: $50,000
Terms: Up to 6 years
Interest Rates: 8–13%
Collateral: Often not required
Personal Guarantee: Typically required
Eligible Uses: Working capital, equipment, marketing, inventory, lease deposits
💡 Insight: Each lender sets its own criteria but typically requires collateral and a personal guarantee.
Approval Odds & Decline Rates
Estimated Applications (YTD): ~6,300
Loans Approved: 3,515
Estimated Decline Rate: 44.4%
Why Applications Fail:
Tips if Denied:
Request a reason from your lender
Work with SCORE or an SBDC for improvement
Consider non-bank alternatives like AMP Advance
