These grants are available only to the intermediaries. There are no grants for the actual businesses. Microloans are available only to borrower who can demonstrates that they are unable to obtain credit elsewhere at comparable interest rates and that they have a good prospects for repayment. A microloan cannot be used for a down-payment or the purchase of real estate. A small business wishing to apply for a microloan must apply directly to the participating microlender intermediary in its local area.
Intermediaries are responsible for making, closing, servicing and collecting the microloans.
Agree not to use the proceeds of the microloan for any down payment or the purchase of real estate. Microloans are not low interest loans. The actual interest rates are fixed and will vary from intermediary to intermediary. The average range of interest rates for microloans is between 10 and 13 percent. The maximum maturity of a microloan is six years.