Microloan

Definition:

A SBA loan program that helps entrepreneurs get very small loans, from less than $100 to $25,000

Microloans from the SBA can be used for machinery and equipment, furniture and fixtures, inventory, supplies, and working capital, but can’t be used to pay existing debts. Microloans are administered through nonprofit intermediaries using SBA funds. Terms are usually short, and the application turnaround time is less than a week. These organizations receive loans from the SBA and then turn around and make loans to entrepreneurs. The intermediaries will often walk you through writing your business plan and taking inventory of your business skills.

Related Content

Product Development

The overall process of strategy, organization, concept generation, product and marketing plan creation and evaluation, and commercialization of a new product

Exit Interview

The formal conversation that takes place between an employee and an HR or other manager to determine the reason(s) the employee is leaving

Primary Market Research

Iinformation that comes directly from the source--that is, potential customers. You can compile this information yourself or hire someone else to gather it for you via surveys, focus groups and other methods.

Credit Policy

Guidelines that spell out how to decide which customers are sold on open account, the exact payment terms, the limits set on outstanding balances and how to deal with delinquent accounts

Mergers

The combination of one or more corporations, LLCs, or other business entities into a single business entity; the joining of two or more companies to achieve greater efficiencies of scale and productivity

Subchapter S Corporation

A special form of corporation that allows the protection of limited liability but direct flow-through of profits and losses