SBA offers new microloans

WASHINGTON — This week, the U.S. Small Business Administration published a final rule for the Microloan Program that provides more flexibility to nonprofit intermediaries, expands the pool of microloan recipients, and increases accessibility to SBA programs.

The change will make small businesses that have an owner currently on probation or parole eligible for microloan programs, aiding individuals with the highest barriers to traditional employment to re-enter the workforce.

“Small business ownership and self-employment are paths toward wealth creation and independence,” said administration spokesman Miguel A. Ayala. “This option can be particularly useful for citizens who may have difficulty finding employment, after returning to their community from prison. With millions of Americans looking to start over after incarceration or move past their criminal records, the SBA is removing barriers so that citizens can achieve economic security and be successful members of society.”

The administration’s Microloan Program is focused on startups, minority and other underserved markets, and provides loans up to $50,000 to help small businesses and certain not-for-profit childcare centers start up and expand. Microloans play an important role in distressed communities where access to conventional lending remains a challenge. The average microloan size is approximately $13,000.

This action supports the goals of the Federal Reentry Council to reduce barriers to employment and reduce recidivism. It also implements key recommendations of the President’s “My Brother’s Keeper” initiative to increase access to jobs, reduce violence, and provide a second chance.

More information about the microloan program can be found at sba.gov/microloans.

This information courtesy sba.gov.