The SBA has a number of different products and the one we are probably most often approached on is the microloan. The microloan program is generally for minorities, women in business, and other qualified needful borrowers. You can get into the microloan with a business plan that you give to an intermediary.
Generally, the microloan is about $10,000. The microloan program allows the borrower to request over $20,000 but only if they cannot get credit anywhere else. These loans are pretty expensive, ranging to prime plus 7.75%.
The business plan for a microloan should contain all the usual elements:
The business plan will help to demonstrate the seriousness of the borrower and also helps them put their best foot forward when applying for small amounts of money. The microloan business plan program is a good way to get started with your business. It gives you the basic business capital sometimes needed to expand into a bigger plan and market while keeping cash flow. The loan generally can be a line of credit that is extended over a short period of time to limit the exposure to high interest rates associated with the sub prime loan.
You can learn a lot more about a business plan for a microloan by calling one of our business plan consultants and talking to them about how Masterplans can help. Often the planning fee is too high for a small amount of money so you can be helped into the next level of funding by starting with a microloan. Call 877-453-2011 to contact a professional business plan writer about your business planning needs.