CALIFORNIA BUSINESS MINUTE
SBA Redux
02-01-11
Hi, I am Tim Johnson and welcome to the California Business Minute.
The Small business Administration has announced the release of two new programs
to help spur business lending.
The Community Advantage and Small Loan Advantage programs are aimed at increasing
the number of lower-dollar SBA 7(a) loans going to small businesses and entrepreneurs
in underserved communities.
Both programs will offer a streamlined application process for SBA-guaranteed 7(a)
loans up to $250,000. These loans will come with the regular 7(a) government guarantee,
85 percent for loans up to $150,000 and 75 percent for those greater than $150,000.
Small Loan Advantage will be available to the 630 financial institutions across the
country in the agency’s Preferred Lender Program (PLP). Under PLP, which includes
most of the agency’s highest volume lenders, SBA delegates the final credit decisions
to lenders. The SBA through the Community Advantage loan program will expand the
points of access small business owners have for getting loans by opening SBA’s 7(a)
loan program to “mission-focused” financial institutions, including Community
Development Financial Institutions, Certified Development Companies and non-profit
micro lending intermediaries. Community Advantage will leverage the experience these
institutions already have in lending to minority, women-owned and start-up companies
in economically challenged markets, along with their management and technical
assistance expertise, to help make their borrowers successful.
For further information see:
http://www.sba.gov/content/sba-announces-new-initiatives-aimed-increasing-lending-underserved-communities
I am Tim Johnson and this has been the California Business Minute.
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