Micro Loan Program Law and Legal Definition
Micro loan program provides very small loans to the unemployed, to poor entrepreneurs and to others living in poverty, not otherwise eligible for bank loans. Small Business Administration (SBA) makes funds available to specially designated intermediary lenders, which are nonprofit community-based organizations with experience in lending as well as management and technical assistance. These intermediaries make loans to eligible borrowers. The maximum loan amount is $35,000 and the average loan is about $13,000. Micro loans may be used as working capital or for the purchase of inventory, supplies, furniture, fixtures, machinery or equipment. However, the proceeds cannot be used to pay existing debts or to purchase real estate. Loan terms vary according to the size of the loan, the planned use of funds, the requirements of the intermediary lender, and the needs of the small business borrower.
Legal Definition list
Related Legal Terms
- 8 A Program
- Ability One Program
- Abuse in Later Life Program [Department of Justice]
- Academic Competitiveness Grant (ACG) Program [Education]
- Accelerated Nursing Degree Program
- Acquisition and Improvement Loan [Veterans' Relief]
- Acquisition Loan [HUD]
- Acquisition, Development and Construction (ADC) Loan
- Adjustable Rate Mortgage Loan
- Administrative Cost of Issuing a Loan Guarantee
