A microloan is an alternative financing option that is intended for small businesses or startups that do not qualify for traditional loans or other types of funding. These small loans, which typically max out at $50,000, are provided by the Small Business Administration (SBA), virtual loan platforms, and even individuals, although there is a limit on what the money can be spent toward. Although interest rates will vary, the SBA website states that they are typically between 8% and 13%.

Related terms "M"