SoFi Microloans offer an appealing opportunity for small business owners who need up to $50,000 in funding. Terms are flexible, with repayment periods up to six years and interest rates varying by lender and applicant. Applications are open to businesses with fewer than five employees, making this option attractive for startups or sole proprietors who may have limited borrowing history.

How to Apply for a SoFi Microloan

1. Create a business plan that clearly states your business goals and financial projections.
2. Check eligibility – ensure your business has no recent bankruptcies, good payment history, and the ability to repay.
3. Select the right microlender or program that fits your business needs.
4. Gather necessary documents such as ID, proof of income, business statements, and references.
5. Complete the online application and wait for approval, which is typically quick.

Pros of SoFi Microloans

One major advantage is flexible borrower requirements, meaning those with little credit history or lower scores can still qualify. Additionally, many microlenders offer extra training and business support, which is valuable for new entrepreneurs. Funding is often accessible quickly, sometimes in as little as a day.

Cons of SoFi Microloans

Microloans have relatively low maximum amounts at $50,000, which may not be sufficient for larger business needs. Some programs restrict how the funds can be spent, which might limit flexibility. Interest rates also vary and can be higher than traditional loans for some applicants.

Our Verdict

For small business owners or startups, SoFi Microloans stand out as a great way to obtain fast, flexible funding with manageable requirements. Limitations in maximum loan size and possible spending restrictions are minor if your business needs fall within typical microloan ranges. We recommend reviewing the full terms but find that SoFi Microloans are a reliable choice for early-stage businesses or those needing a financial boost to grow.