# What is a small loan lender license? *Reviewed 2026-05-15* ## Short answer A small loan lender license authorizes a company to make consumer loans under a state's defined small-loan dollar limit, often with specific rate and fee rules. Many states use this category for lower-balance installment and short-term consumer loans. The dollar threshold and the license name vary from state to state. States that license consumer lending often create a tier for loans below a set amount, called a small loan or small-dollar license. The category usually comes with its own rate ceiling, fee limits, and disclosure requirements designed for lower-balance borrowing. Above the threshold, a different consumer-lending or installment-loan license typically applies. Because each state sets its own dollar limit and rate rules, the same product can fall under the small loan license in one state and a standard consumer license in another. If your loans sit near a state's cutoff, the loan size effectively chooses your license. Confirm the threshold and the rate authority in every state where you lend before you file. ## Related - [Consumer lending licensing](/consumer-lending-licensing) - [Lending licensing](/lending-licensing) - [Talk with our team](/contact)