SBA Announces New Upcoming Business Loan Programs

This spring the Small Business Administration will introduce two new SBA loan programs that will provide capital to underserved entrepreneurs directly through nonprofit microfinance organizations.

The Community Advantage and Small Loan Advantage programs are both a simpler and easier way for lenders to make smaller-dollar loans and get a full SBA guarantee of up to 85 percent.

They are open to borrowers who would regularly qualify for an SBA loan. There are no geographical restrictions, but the loan must be $250,000 or less.

The Small Loan Advantage will be available through 630 lenders including the largest banks as well as regional banks.

Interest rates vary by the size of the loan, but generally they will be around prime plus 2.75 percent.

The same process will be used for the Community Advantage program, but loans will be provided by “mission lenders,” who are primarily not-for-profits engaged in community economic development. These mission lenders will reach out to entrepreneurs lacking collateral and be able to fund them based on cash-flow.

If you are interested in learning more about loan programs and obtaining funding for your business, you can contact a professional consultant with The World Advisory Company.

Share this: