Which of the following is NOT a characteristic of a Microloan?

A microloan is designed to be accessible to small and emerging businesses, particularly in the agricultural sector. One of the distinguishing features of microloans is that they typically do not require a lien on real estate, which aligns with the option stating that a lien on real estate is not required. This characteristic allows more flexibility for borrowers who may not own property.

Additionally, microloans are generally aimed at providing financing for smaller amounts, with the typical maximum loan amount being $50,000 or less, which is represented in one of the answer choices. These loans frequently target annual operating expenses to support farmers and small operations in managing their day-to-day costs effectively.

The specificity about the applicant's total outstanding debt and the restriction of $400,000 mentioned in the option about total OL debt being $400,000 or less is not a foundation of microloan characteristics. Microloans tend to focus more on the intended use of funds and the loan amount rather than the overall debt limit of the applicant. Therefore, this characteristic does not accurately reflect the nature of a microloan, making it the correct choice for the question regarding which is not a characteristic of a microloan.