In December, 2010, the SBA announced two new programs aimed at entrepreneurs and small business owners in underserved communities. The programs, Small Loan Advantage and Community Advantage, were designed to make it simpler for business owners in underserved categories to access funding. The programs would give improved access to low-dollar loans that SBA and U.S. Department of Commerce studies have shown are important for business development and growth in these areas. The programs were also designed to replace the existing Community Express pilot loan program.
The newly authorized lenders include Cen-Tex CDC from Austin, Texas, The Progress Fund from Greensburg, Pa., Eastern Maine Development Corporation from Bangor, Maine, Idaho-Nevada Community Development Financial Institution in Pocatello, Idaho, Kentucky Highlands Investment Corporation based in London, Ky., and CDC Small Business Finance in San Diego, Calif. The lenders may begin immediately offering loans through the Community Advantage program. The SBA indicates that it will continue approving lenders going forward.
If you are a small business owner or entrepreneur in an SBA-recognized underserved community and you would like more information about how this program might help you, contact me and we can set up a time to discuss your situation and needs. You can also receive two complementary reports by joining our email list.
Craig G. Francis is the owner of Francis Financial and The SBA Loan Store. He has been a top producer of SBA Loans since 1981, and has worked with Dun & Bradstreet and Bank of Commerce. Craig Francis has the expertise to steer clients through the often confusing rules and regulations associated with SBA Loans, having helped over 2,000 businesses acquire over a billion dollars in loans. He can be contacted through CraigGFrancis.com, SBALoanStore.com, on LinkedIn, or at 888-666-9722.
These lenders will have access to 7(a) loan guarantees of 85 percent up to $150,000 and 75 percent over $150,000.
On Thursday, April 28, 2011, the SBA announced the first group of lenders that have been authorized to provide loans through the Community Advantage program. These lenders - primarily “community-based, mission-focused financial institutions,” will have access to 7(a) loan guarantees of 85 percent up to $150,000 and 75 percent over $150,000. The program will cap loans at $250,000 and will provide a “streamlined” application process. The lenders involved are primarily Community Development Financial Institutions, SBA Certified Development Companies and SBA nonprofit microlending intermediaries.The newly authorized lenders include Cen-Tex CDC from Austin, Texas, The Progress Fund from Greensburg, Pa., Eastern Maine Development Corporation from Bangor, Maine, Idaho-Nevada Community Development Financial Institution in Pocatello, Idaho, Kentucky Highlands Investment Corporation based in London, Ky., and CDC Small Business Finance in San Diego, Calif. The lenders may begin immediately offering loans through the Community Advantage program. The SBA indicates that it will continue approving lenders going forward.
If you are a small business owner or entrepreneur in an SBA-recognized underserved community and you would like more information about how this program might help you, contact me and we can set up a time to discuss your situation and needs. You can also receive two complementary reports by joining our email list.
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