Microloan Program Expanded Eligibility and Other Program Changes

In June 2015, the U.S. Small Business Administration (SBA) proposed a now finalized rule issued for the Microloan Program to accomplish the goals of expanding the pool of eligible microborrowers, increasing minimum microloan production standards, removing the requirement that Intermediaries deposit funds only in interest bearing accounts, and allowing Microloan Program Intermediaries to use credit unions as depositories for their Microloan Revolving Funds (MRFs) and Loan Loss Reserve Funds (LLRFs).

The rule also included technical amendments that conform the regulations to current statutory authority. Expanding eligibility for the Microloan Program was aimed at allowing for increased creation of new businesses and will reduce the Federal barriers to successful reentry of formerly incarcerated individuals, who often have difficulty finding steady employment.

The Agency developed this revision to the Microloan Program eligibility requirements as a result of a regulatory review conducted in connection with SBA's participation on the Federal Interagency Reentry Council.

View the Federal Register notification (PDF)