This study was undertaken to investigate the relationships between lending policies, education of clients, loan usage, and business performance of small-scale enterprises owned by clients of Pride Microfinance Ltd, Buwenge and Jinja Districts. It is important to note that education of clients and loan usages have an important role to play in the business performance of small-scale businesses of borrowers. These are critical since lending policies are generally thought to be the biggest hindrance to the business performance of small-scale borrowers of loans from Micro Finance Institutions.