Many small businesses were caught in the worst economic crisis since the Great Depression. Many of them had to struggle to find capital last year. All the small businesses which wanted to borrow money to expand or modernize their business could not find credit or any lenders. Many of them were facing a status quo. Many other businesses were also facing sharp drops in revenue and they also needed loans for the survival of their business though they had cut down a lot on their budgets.

The President of America signed the American Recovery and Reinvestment Act into law in February 2009 to create jobs and promote spending. This law included $56.1 million for microloans for small businesses. It was to be given through the Small Business Administration through September.

SBA microloans were paid out through specially-designated non-profit intermediary lenders across the country. These loans reduce both the risk to the lender and the interest rates for the borrower.