Small Loans, Real Math

Microloans — typically $500 to $50,000 — are the entry point to business credit for startups, home-based businesses, and first-time borrowers. The SBA Microloan program lends through nonprofit intermediaries at rates around 8–13%, and mission lenders like Kiva and Accion fill the gap below that. Because the amounts are small, the monthly payment math is forgiving, but two details deserve attention. First, many intermediaries charge an origination or administration fee of 1–3%, which this calculator converts into the effective APR you're really paying. Second, microlenders underwrite character and plan, not just credit score — a solid repayment schedule is often what lands the loan, and showing a lender your real monthly number builds the trust that wins the yes.