Best Business Microloans in June 2026
Get a small business microloan — typically $50,000 or less — from lenders like the SBA, which focuses on early-stage businesses, or Kiva, which charges 0% interest with no minimum credit score required.
- A microloan is a small business loan — typically $50,000 or less — designed for startups, borrowers with limited credit history or those who can’t qualify for conventional financing.
- Microloans are commonly offered by nonprofit organizations and government agencies, many of which also provide business coaching and training alongside funding.
- Eligibility requirements vary widely. Some lenders have no minimum credit score, while others require at least 24 months in business and $300,000 in annual revenue.
- Interest rates range from 0% to 15.00% depending on the lender, and some charge additional fees like application or closing costs.
| Lender | Best for | Starting rate | Amount | Term | |
|---|---|---|---|---|---|
|
SBA microloans | 8.00% (Interest rate) | Up to $50k | Up to 84 months | |
|
Farm loans | 5.00% | Up to $50k | Up to 84 months | |
|
Interest-free loans | 0.00% | Up to $15k | 12 to 36 months | |
|
Personal loans for business | 6.20% |
$1k – $75k |
36 to 60 months | |
|
Minority entrepreneurs | 9.99% (interest rate) |
$5k – $250k |
Up to 36 months | |
|
Women-owned businesses | 15.00% |
$500 – $2.5k |
Up to 6 months | |
|
Startups | 0.00% |
$500 – $10M |
12 to 180 months | |
|
Bad credit | 7.75% (interest rate) | Up to $100k | Up to 60 months |
Our top picks for best business microloans
Best for: SBA microloans – U.S. Small Business Administration
- Starting rate
- 8.00%
Interest rates vary based on lender. They generally fall between 8% and 13%.
- Typically less strict eligibility requirements than other SBA loans
- Average loan amount of $13,000
- Capped interest rates
- Collateral and/or a personal guarantee may be required
- Can’t use funds to pay existing debt or purchase real estate
- Slow approval process
For borrowers who need a small loan and can’t qualify for conventional financing, the SBA microloan program is one of the most accessible government-backed options available. Loans go up to $50,000, but the average is just $13,000, making it a realistic fit for early-stage businesses that need a modest amount of capital rather than a large loan. Eligibility requirements tend to be less strict than other SBA programs, and some intermediary lenders have no minimum credit score requirement.
- Min. credit score: Generally 620
- Min. time in business: Not specified
- Min. annual revenue: Not specified
Best for: Farm loans – U.S. Department of Agriculture
- Starting rate
- 5.00%
- No appraisal needed for ownership loans
- No minimum loan amount
- Low interest rates
- Previous farm management experience within the last ten years required for a farm ownership loan
- Can’t be delinquent on any type of federal debt (other than IRS tax debt)
For small or beginner farmers who can’t access traditional financing, the USDA microloan is one of the few government-backed options designed specifically for agricultural businesses. The Farm Service Agency (FSA) offers two types: operating loans for day-to-day farm expenses, and ownership loans for purchasing or improving farm property. Both top out at $50,000 with no minimum loan amount, making it a flexible fit for farmers at any stage.
- Min. credit score: Not required
- Min. time in business:
- Operating loan: Not specified
- Ownership loan: 12 to 36 months farm management experience
- Min. annual revenue: Not specified
Best for: Interest-free loan – Kiva
- Starting rate
- 0.00%
- 0.00% interest during the entire loan term
- No time in business requirement or minimum annual revenue
- No collateral required
- Long approval and funding timeline
- Loan amount depends on funds raised during the Private Fundraising Period
- Smaller loan maximum compared to other microlenders
Kiva is the best option on this list for borrowers who want to avoid interest entirely. There’s no minimum credit score, no time in business requirement and 0.00% interest for the life of the loan. The tradeoff is time. The full funding process, from application to disbursement, can take up to 60 days, as contributions are collected from your personal network and then Kiva’s public lender pool.
Kiva doesn’t have a set minimum credit score, time in business requirement or annual revenue requirement, though your overall creditworthiness may still be a factor.
Best for: Personal loans for business – Upstart
- Starting rate
- 6.20%
- 24-hour funding available
- Low credit borrowers may qualify
- No prepayment fees
- Doesn’t offer specific business loans
- Charges an origination fee
- Limited loan term options
- Minimum loan amounts vary by state
Upstart is a personal loan — not a dedicated business loan — but for borrowers with limited credit history, it’s one of the most accessible options on this list. There’s no minimum credit score requirement, and you only need a minimum annual income of $12,000. Just note that borrowing personally for business purposes won’t build business credit, and accrued interest won’t qualify as a business tax deduction.
Check out LendingTree’s full Upstart review.
- Min. credit score: None
- Min. time in business: Must meet personal employment requirements
- Min. annual revenue: $12,000
Best for: Minority entrepreneurs – Accion Opportunity Fund
- Starting rate
- 9.99%
- Lends primarily to women, people of color and low-income entrepreneurs
- Offers business coaching and mentorship
- Flexible repayment terms
- High borrowing amounts compared to other microlenders
- Not available in District of Columbia, Montana, North Dakota, South Dakota, Tennessee or Vermont
- Requires at least 24 months in business and $300,000 in annual revenue
- Doesn’t list minimum credit score requirements
The Accion Opportunity Fund is a nonprofit lender focused on minority entrepreneurs, veterans, women-owned businesses and ITIN-only borrowers, making it an excellent funding option for underserved populations. Loans go up to $250,000, well above the typical microloan ceiling, with repayment terms up to 36 months. AOF also provides business coaching and customer service in English and Spanish.
- Min. credit score: Not specified
- Min. time in business: 24 months
- Min. annual revenue: $300,000
Best for: Women-owned businesses – Grameen America
- Starting rate
- 15.00%
For first-time loans
- No minimum credit score, collateral or business income required
- Helps build business credit
- Provides business training and coaching
- Must live within 15 miles of a Grameen America branch
- Small loan amounts compared to other microlenders
- Must form a group of four female entrepreneurs in your area and attend weekly meetings to qualify
Grameen America is a nonprofit microlender built specifically for women entrepreneurs, with no minimum credit score, no collateral and no business income required to qualify. First-time borrowers can receive up to $2,500, with larger amounts available after successful repayment. The program also includes weekly meetings that cover financial basics and help build business credit.
To qualify, you’ll need to form a group of four women entrepreneurs who all live within 15 miles of a Grameen America branch and attend weekly meetings together.
Grameen America doesn’t have a set minimum credit score, time in business requirement or annual revenue requirement, though your overall creditworthiness may still be a factor, and you’ll need to work with a group of women entrepreneurs who live within 15 miles of a Grameen America branch to qualify.
Best for: Startups – LiftFund
- Starting rate
- 0.00%
- Works with borrowers regardless of credit, collateral or experience
- Can fund in as little as two to three days
- Offers free financial coaching, networking events and training workshops
- Only available in 15 states: Alaska, Arkansas, California, Florida, Georgia, Kentucky, Louisiana, Mississippi, Missouri, New Mexico, New York, Oklahoma, South Carolina, Tennessee and Texas
- Collateral may be required
LiftFund is a nonprofit lender focused on startup businesses and entrepreneurs who haven’t been able to access traditional financing. It works with all types of borrowers, including those with limited credit, collateral or experience, and offers loans from $500 up to $10,000,000 with rates starting at 0.00%. Beyond funding, LiftFund provides free financial coaching, networking events and training workshops, available even to non-borrowers.
LiftFund doesn’t disclose the minimum credit score, time in business or annual revenue you’ll need to qualify. Apply online or contact the lender directly to learn if your business qualifies.
Best for: Bad credit – Ascendus
- Starting rate
- 7.75%
Rates range from 7.75% to 15.99%
- Low minimum credit score requirement
- Considers your overall debt history, not just your credit score
- Loans not available in Vermont
- Charges a $200 application fee and 5% closing fee
Ascendus is a nonprofit microlender that works with borrowers with limited credit history, accepting scores as low as 575. Beyond the credit score, Ascendus considers the full picture of your business’s growth potential. Ascendus also provides training and educational support for business owners.
- Min. credit score: 575
- Min. time in business: 6 months
- Min. annual revenue: Not specified
What is a microloan?
A microloan is a small loan — typically $50,000 or less — designed for startups, borrowers with limited credit or those who can’t qualify for conventional business financing. Common providers include nonprofit organizations and government agencies like the SBA and USDA.
Some lenders restrict how funds can be used or limit eligibility by location, industry or demographics. Many also offer business coaching and training alongside funding.
Are microloans right for you?
A microloan may be a good fit if:
- You’re an early-stage business or startup
- You have limited credit history
- You belong to an underserved community
- You need $50,000 or less
A microloan may not be the right fit if:
- You need more than $50,000
- You have an established business with solid revenue
- You need funds quickly
If you’re unsure, compare your options. A business line of credit or SBA 7(a) loan may be a better fit depending on your needs.
Pros and cons of microloans
PROS
- More flexible eligibility than traditional business loans
- Often designed for minority, women-owned and veteran-owned businesses
- Many lenders offer business coaching and training alongside funding
- Loan amounts starting as low as $500
CONS
- Short repayment terms and potentially higher interest rates than traditional loans
- Collateral and/or a personal guarantee is usually required
- Some lenders restrict how funds can be used
- Not available in all areas or to all demographics
- May not cover larger business needs
What can microloans be used for? Most microlenders allow funds to be used for common business expenses like working capital, inventory, equipment, payroll and marketing. Some lenders, like the SBA, explicitly prohibit using funds to pay existing debt or purchase real estate.
How to get a microloan
If you’ve decided that a microloan is the right move for your business, here are the general steps to follow:
1. Review eligibility criteria
Each microlender sets its own business loan requirements to determine borrower eligibility. Plus, some microlenders only work with businesses in specific geographic areas, industries or demographics.
Although microlenders tend not to rely exclusively on your credit score when reviewing your application, it’s still worth boosting your personal credit score before applying. Having a higher score could help unlock more favorable rates and terms — potentially saving you more money in the long run.
You can monitor your score for free with LendingTree Spring. Try to pay down your debts and dispute any errors on your credit report before submitting a loan application. If the lender does consider your credit score, it’s usually in the overall context of the loan application. That said, serious financial issues, such as an active bankruptcy, may affect your eligibility.
2. Gather essential financial documents
Here are some common documents your lender may need:
- Business and personal bank statements
- Business plan
- Copies of your articles of incorporation, bylaws or operating agreement
- Personal and business tax returns
3. Be prepared to provide collateral or a personal guarantee
A microlender may require borrowers to offer business assets as collateral to secure a microloan. Common assets can include cash, equipment or real estate. In addition, a personal guarantee may be required, meaning you’d be responsible for repaying the microloan if your business defaults.
4. Compare options and rates
Review each lender’s terms and conditions to pick the best option for your business. You may benefit from reading LendingTree’s small business lender reviews in advance to ensure they align with your business’s criteria and needs.
You can also use LendingTree’s business loan calculator to see your borrowing potential, compare rates and get an overview of what you’ll pay in interest.
See LendingTree’s full guide on how to get a business loan.
How much does a microloan cost?
Microloan rates vary widely depending on the lender. Government-backed options like the SBA and USDA tend to have lower rates, while nonprofit lenders like Grameen America charge as much as 15.00%.
Beyond interest, watch for fees. Ascendus charges a $200 application fee and 5% closing fee, and Upstart charges an origination fee. Some lenders, like the SBA, cap the interest rates intermediaries can charge, which adds a layer of consumer protection.
Alternatives to microlending
After weighing the pros and cons of microloans, you might decide to explore other options.
- Business line of credit: Access revolving funds for ongoing expenses, typically only paying interest on what you withdraw.
- Equipment financing: Finance specific equipment purchases. Since the equipment acts as collateral, many lenders don’t require a lengthy business history.
- SBA 7(a) loan: For borrowers who need more than $50,000, the SBA 7(a) offers up to $5,000,000 with competitive rates and terms up to 25 years.
- Small business grants: Free funding for startups and underserved entrepreneurs — competitive, but worth exploring before taking on debt.
- CDFIs: Community development financial institutions specialize in serving borrowers who don’t qualify for traditional loans, similar to microlenders but with a wider range of products.
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Frequently asked questions
Microlenders typically like supporting new businesses that have great business ideas but can’t qualify for a traditional bank loan. Startups or business owners with little to no credit history are often eligible for microloans. Additionally, some lenders cater specifically to underrepresented entrepreneurs, such as women, minorities and veteran business owners.
Funding timelines vary significantly by lender. LiftFund can fund in as little as two to three days, while Kiva‘s process can take up to 60 days from application to disbursement. Government-backed options like the SBA tend to have slower approval processes.
Yes. Several lenders on this list work with borrowers with limited or damaged credit. Ascendus accepts scores as low as 575, while Kiva and USDA have no minimum credit score requirement at all. Most microlenders look beyond credit scores and consider the overall quality of your business.
Microloans are generally smaller and are designed for startups and borrowers who can’t qualify for traditional financing. Standard small business loans can go much higher, often require stronger credit and revenue history and typically come from banks or the SBA’s larger loan programs like the 7(a).
Our methodology: How we chose the best microloans
We reviewed more than 20 lenders to determine the overall best eight microloans. To make our list, lenders must meet the following criteria:
- Minimum time in business: Options for startups or those who have been in operation for 12 months or less.
- Minimum credit score: We prioritize lenders willing to look beyond credit scores and take a big-picture approach to determining a company’s creditworthiness. The options on this list accept credit scores of 575 or less.
- Rates and terms: We focus on microlenders offering competitive fixed rates, transparent rates and fees and flexible repayment options.
- Loan amounts: A range of funding amounts for all types of businesses, with minimums starting at $500.
- Additional resources: Since microloans are mostly geared toward startups and borrowers with limited resources, we look for lenders offering business coaching, networking opportunities and free educational classes to help set new entrepreneurs up for success.