This study examined the impact of microloans on small and medium enterprises (SMEs) in Lubaga Division, Kampala, Uganda. Microfinance, and microloans in particular, are widely promoted as a means of supporting the growth of small enterprises that lack access to conventional finance, yet their impact among Ugandan SMEs remains contested and under-examined. The study investigated how loan accessibility, loan size adequacy, interest and repayment terms, and business training support relate to SME growth. A cross-sectional survey design with a mixed-methods approach was adopted, and data were collected from 180 respondents comprising SME owners and managers who had accessed microloans, together with microfinance staff, using structured questionnaires and interviews. Descriptive statistics, exploratory factor analysis, Pearson correlation, and structural (path) analysis were used. Factor analysis confirmed the construct validity of the microloan dimensions, which loaded onto coherent factors and explained 68.3% of the variance. The results revealed a strong positive and significant relationship between microloans and SME growth (r = 0.67, p < 0.01), with the microloan dimensions jointly explaining 65.0% of the variance in SME growth (R² = 0.650). Loan accessibility (β = 0.32) and loan size adequacy (β = 0.30) emerged as the strongest path predictors. The study concludes that microloans significantly support SME growth and recommends improving loan accessibility, loan size adequacy, and accompanying business training.