The U.S. Small Business Administration (SBA) announced new changes designed to improve access to microloans—particularly for women-owned, minority-owned, and first-time small businesses. The updates aim to make the loan process faster, simpler, and more flexible for entrepreneurs seeking financing under $50,000.
According to the SBA, demand for microloans has surged in recent years, especially among new entrepreneurs and immigrant-owned businesses that traditionally face barriers when applying for bank loans. Many small business owners struggle with strict credit-score requirements, insufficient collateral, or limited financial history.
The expanded microloan program gives SBA-approved lenders more freedom to evaluate borrowers based on business potential, current revenue, and community impact—rather than primarily on credit scores or collateral alone.
Loan terms have also been improved. The SBA confirmed that repayment timelines may now extend up to eight years for qualified applicants, giving new founders more breathing room as they stabilize their operations.
“These changes help ensure that America’s smallest—and most innovative—business owners can access the capital they need to thrive,” an SBA spokesperson said. “Microloans continue to be a lifeline for entrepreneurs who are often overlooked by traditional lenders.”
Local nonprofit lenders across California and the rest of the country are expected to begin launching updated application portals and support programs in the coming months.
Entrepreneurs interested in applying for an SBA microloan can search for approved lenders on the SBA website or through local economic development organizations.