Microloan: Tailored Capital to Support Small Business Growth

Many of the businesses you know and love started with limited resources but big ideas. For entrepreneurs navigating those early stages or looking to grow, access to capital can make all the difference.

That’s where microloans come in. As an intermediary lender of the U.S. Small Business Administration’s Microloan Program, the Entrepreneur Fund (EFund) is committed to making financing accessible to business owners in our region, especially in our rural communities where traditional lending can be harder to secure.  Microloans are often the first step in helping businesses move from survival to growth.

What is a Microloan?

A microloan is a small business loan of up to $50,000,designed to support entrepreneurs who may not qualify for traditional financing.

These loans are often used by:

• Startup and early-stage businesses
• Small business owners with limited credit history
• Businesses in industries that may be viewed as higher risk by traditional lenders, such as restaurants, retail, hospitality, and other seasonally dependent industries.

Additionally, microloans through EFund are paired with strategic advising and guidance, helping business owners build confidence and strengthen their finances and operations along the way.  

Best Uses of a Microloan

Microloans can be used for a variety of uses that help entrepreneurs grow, improve, and enhance their businesses. Common uses include:

• Purchasing equipment or tools needed to operate more efficiently
• Building or replenishing inventory
• Supporting cash flow during a growth phase

Microloans cannot be used to pay existing debts or to purchase real estate.

More importantly, a microloan can help establish or rebuild credit, strengthen your financial foundation and support long-term, sustainable growth.

A Microloan Success Story

Behind every microloan is a business owner taking a chance, and someone willing to take a chance on them.

In its early days, Duluth Coffee Company was run out of owner Eric Faust’s pickup truck at the local farmers' market. He had a vision for more, but limited access to capital.

That first microloan from EFund helped him take the next step, purchasing a larger roaster to produce more coffee to keep up with demand. Today, Duluth Coffee Company’s products are sold in grocery stores across Minnesota.

With ongoing support and a strong partnership, that initial investment turned into multiple loans over time, each one strengthening the business and helping it grow sustainably.

“I didn't even have anybody in my life that wanted to take that kind of risk,” said Eric Faust, owner and founder of Duluth Coffee Company in Duluth, MN. “I have great parents, a super supportive family, great friends, but the Entrepreneur Fund was the one that really took the first real risk, and I'm still floored that they even did, but I'm so grateful for it.”

How to get a Microloan through the Entrepreneur Fund

In 2025, EFund was recognized as the top SBA microlender by volume in both Minnesota and Wisconsin, a reflection of the growing need for accessible, tailored financing.

Microloans continue to be a lifeline for local businesses, providing the resources and confidence entrepreneurs need to move forward.

If you think a microloan could be a good fit for your business:

• Connect with a lending advisor to talk through your goals by completing this form.
• Reach out to our team at info@efund.org  with any questions you may have.

Sometimes, growth starts small. A microloan can be a great first step, and EFund is here to help guide you through that as you build momentum, strengthen your business, and move toward what’s next.