How intermediaries differ from banks
A microloan intermediary is usually a community development financial institution or a mission-driven non-profit. They underwrite character and plan as much as ratios, they typically require technical assistance alongside the loan, and their approval standards are set locally rather than nationally.
This also means the experience varies enormously by intermediary. There is no single microloan product; there are hundreds of local ones under one federal umbrella.
What it can fund
Working capital, inventory, supplies, furniture, fixtures, machinery, and equipment. Microloans cannot be used to buy real estate or to repay existing debt.
Commonly used for
- New businesses with no lending history
- Loans too small for a bank to bother underwriting
- Owners who will actually use the attached technical assistance
What to check before signing
- Rates are higher than 7(a) because the loans are small and the intermediaries are not banks
- Availability is geographic - coverage is patchy in rural areas
- Cannot be used for real estate or refinancing
What the record shows
Real SBA numbers, not estimates
Every figure below is computed from the SBA's own loan-level file rather than from a lender's marketing.
Loans since FY2010
1,052,071
Median approval
$180,000
Median 7(a) rate
6.75%
Median term
10 yr
Source: U.S. Small Business Administration, SBA 7(a) and 504 FOIA data, as of 2026-06-30. Approvals from FY2010 onward. How we calculate this.
| Largest SBA lenders | Approved | Loans | Median loan |
|---|---|---|---|
| Live Oak Banking Company | $23.10B | 17,770 | $850,000 |
| The Huntington National Bank | $19.51B | 82,278 | $60,700 |
| Wells Fargo Bank | $17.43B | 56,773 | $25,000 |
| U.S. Bank | $10.67B | 43,737 | $40,000 |
| JPMorgan Chase Bank | $8.49B | 44,082 | $95,000 |
Microloan: common questions
- Who actually makes SBA microloans?
- Non-profit community lenders approved as SBA intermediaries. The SBA lends to them; they lend to you. The SBA publishes a list of intermediaries by state.
- Is the average microloan really $50,000?
- No - $50,000 is the cap. Average microloans have historically run well under half that.