An SBA Microloan is a loan of up to $50,000 made by an SBA approved intermediary. These intermediaries are non-profit organizations that have their own lending and credit requirements. Generally, they require some form of collateral as well as the personal guarantee of the business owner. SBA Microloans can be used to open, enhance, or improve a small business. Examples of how the proceeds can be used include: working capital, equipment, machinery, fixtures, inventory, supplies, and furniture. While the maximum loan is $50,000, the average loan runs between $20,000 and $30,000. PacificBusinessAdvisors.net can assist you in locating a local SBA approved intermediary.