2025 SBA Microloan Trends: Who’s Getting Funded, Where, and How?

Microloans, Major Impact

The SBA Microloan Program continues to play a critical role in fueling America’s smallest businesses. Designed for startups, solopreneurs, and underserved founders, this program connects entrepreneurs with capital through nonprofit lenders—unlocking funding that traditional banks often overlook.

This June 2025 mid-year bulletin breaks down who’s getting funded, how much, and what industries and states are thriving under the program. If you’re evaluating your funding options or navigating a tight lending environment, this report offers data-driven direction.

Top States for SBA Microloan Activity

By Loan Count

By Loan Volume

By Approval Count

💡 Insight: Startups account for 1 in 4 SBA Microloans and receive a higher share of funding than their volume would suggest—highlighting their viability under this program.

Top SBA Microloan Lenders (June 2025 YTD)

💡 Insight: Loan size varies widely. ECDI prioritizes access over size, while Bankable serves larger, more capital-ready applicants.

How to Apply for an SBA Microloan

1. Find a Lender: Use SBA’s Lender Match to locate approved intermediaries.

2. Write a Business Plan: Be clear on how funds will be used and repaid.

3. Gather Docs: Tax returns, profit & loss, personal financials.

4. Attend Coaching: Many lenders require technical assistance before approval.

5. Apply Directly: Submit your application through the intermediary (not directly to SBA).

SBA Microloan Requirements

• Max Loan Size: $50,000

• Terms: Up to 6 years

• Interest Rates: 8–13%

• Collateral: Often not required

• Personal Guarantee: Typically required

• Eligible Uses: Working capital, equipment, marketing, inventory, lease deposits

💡 Insight: Each lender sets its own criteria but typically requires collateral and a personal guarantee.

Approval Odds & Decline Rates

• Estimated Applications (YTD): ~6,300

• Loans Approved: 3,515

• Estimated Decline Rate: 44.4%

Why Applications Fail:

• Weak credit history

• Missing financials or no documentation

• No business plan

• Cash flow concerns

Tips if Denied:

• Request a reason from your lender

• Work with SCORE or an SBDC for improvement

• Consider non-bank alternatives like AMP Advance