Little loans, big benefits: hundreds of community-based agencies loan small amounts to start-ups and existing home businesses - includes related articles on two case studies of individuals who received loans and includes a directory of microloan institutions

Home Office Computing, July, 1993 by Paul Edwards, Sarah Edwards

The SBA mandates that loans be made available to anyone within the specified lending area without a means test. Nonetheless, because almost all of the lenders have other sources of funds besides the SBA, many do target particular populations, such as women or minorities. In some cases, the lending institution involved offers both microloans and larger, more traditional commercial loans.

The interest rates can range anywhere from 5 to 16 percent, and many vary according to the market rate at the time. The maximum payback period allowed by the SBA is six years.

Call or write the institution nearest you for details on applying for a microloan.