Unlocking the Benefits of an SBA Microloan—a Guide for Small Business Owners & Entreprenuers.
Great question! There are many ways a microloan can be used, and a couple ways they cannot be used.
You cannot use a microloan to pay off existing debts or to purchase real estate.
Microloans are commonly used to purchase equipment, inventory, supplies, professional services, marketing, and more. Another great use for a microloan is working capital. This includes things like paying bills and covering other expenses that are necessary to keep your business running. This type of working capital loan can help you bridge any cashflow gaps between when you need to pay for something and when you will receive payment.
Applying for a microloan really is not a difficult process. It does require paperwork and at minimum you'll need to provide:
- Business Plan
- Financial Statements
- Tax Returns
The most common mistake we see are business owners applying without a business plan. Our team offers coaching to help you create a business plan our lenders will love, that outlines clear business goals, and gives you confidence going forward!
You're Ready to Apply? What are the Next Steps?
If you have reviewed all of this and say, "ya, I have that, I can do that, that sounds like me, I think I am ready...", there are a few next steps to take:
- Connect with a coach who can guide you through the application process
- Have a clear plan on how you are going to use the money
- Begin taking advantage of the technical assistance our team provides as part of the microloan program
Connect with a Pathway coach to learn more about microloans and how they can help your business?
What have you learned from this information? What documents do you need help producing? What research do you need help with? What next steps do you need to take before talking with a lender?
Pathway coaches are experts in their field—former executives, CPA's, and more with expertise ranging from accounting to sales & marketing. We're ready to help you and your business start and grow!