Microloans for small business startup are small loans that allow borrowing up to $50,000. They are popular among executives on their early stages of the startup. These loans are designed to cover small expenses. Community-based non-profit intermediary lenders that provide such loans also can cover management and technical assistance.
Usually, it’s easier to qualify for microloans for small business with bad credit. They are more flexible than traditional loans because they help startups to find their feet. Therefore, the requirements might be less strict.
The requirements differ as well as they differ with traditional small business loans. They depend on the industry you work in, on the history of your business, its reputation, on the loan amount, etc. The lender will try to find out all details of your application to understand whether it’s worth financing. A lot depends on the application.
If you can’t qualify for the loan among traditional lenders, you can search among black banks that participate in microloans for small business with no minimum restriction. Probably, there you will manage to find something suitable.
Before looking among the online Peer-to-Peer lenders, you should consider a help of Accion and the SBA. Small groups of borrowers can apply to the Business Center for New Americans and the Opportunity Fund.