150 East Ponce de Leon Avenue
Suite 400

Decatur, Georgia 30030
Phone: 404-377-8880
Fax: 404-377-8880

Under the Microloan Program, the SBA makes funds available to DEBCO, which act as an intermediary lender.  DEBCO uses these funds to make loans of up to $35,000 to new and existing small businesses.  DEBCO also provides management and technical assistance to help ensure success.

Eligibility Requirements

Virtually any type of for-profit small business is eligible for the Microloan Program.  The form of the business, whether a proprietorship, partnership or corporation, is not a determining factor.  It must, however, meet the SBA's size standards at the time of application.  Generally, businesses applying for this type of loan will fall within these standards.  Not-for-profit childcare centers are also eligible to apply.

Use of Loan Funds

Microloan funds may be used for working capital or to purchase inventory, supplies, furniture, fixtures, machinery and equipment.  Funds may not be used to purchase real estate or to provide a down payment on real estate.

Loan Terms

The maximum Microloan is $35,000.  The average-sized loan is around $10,500.  The maximum term may vary according to the size of the loan, the planned use of funds, the requirements of DEBCO, and the needs of the borrower.

Microloans are direct loans from DEBCO and are not guaranteed by the SBA.  Interest rates vary.

Collateral Requirements

As with credit standards, DEBCO has collateral requirements for the Microloan Program.  In most cases, loans are at least partially collaterized by equipment, contracts, inventory or other property.  DEBCO may also require personal guaranties and personal assets.