 TITLE: Will Getting a Microloan Hurt My Credit Score? CONTENT: What Is a Microloan?\n--------------------\nAs the name implies, microloans are very small loans designed for small businesses. How small are the loans? While the average loan for Small Business Administration's flagship 7(a) loan program last year was $446,487, the average SBA Microloan was just $14,735. You can even find microloans as small as a few hundred dollars, which could be all a very small business needs to get through a rough patch.\nGiven the smaller dollar amounts, applying for microloans is usually faster and easier than applying for more traditional business loans. Microloans, however, generally have shorter terms and often have higher interest rates as well.\nA business slowdown can hurt your personal finances too. But it's important to remember that microloans can be used only for business purposes—not for personal expenses or personal debt. Allowable uses for microloans vary depending on the lender. For example, SBA microloans can be used for working capital (such as paying employees); buying business inventory or supplies; or buying machinery, equipment, furniture or fixtures. Microloans cannot be used to pay existing business debt.\nIf you need money to cover personal expenses, consider applying for a personal loan. Unlike microloans, personal loans can be used for almost anything (although some do have restrictions). END