SBA Extends the Community Advantage Loan Program
Big news coming from Washington today! U.S. Vice President, Kamala Harris, and SBA Administrator, Isabella Casillas Guzman, have announced the renewal and expansion of the Community Advantage loan program, making it effective through September 30, 2024. That’s an additional two years beyond the pilot program’s initial schedule.
“America’s mission-driven lenders have been a critical partner to the SBA in getting much-needed financial relief to underserved businesses throughout the COVID pandemic. Scaling the SBA’s Community Advantage pilot program will help us build on that momentum, create a broader distribution network and better ensure the opportunities of our nation’s accelerating recovery are accessible to more entrepreneurs pursuing their American dreams of starting and growing a successful business.”Isabella Casillas Guzman, Administrator, U.S. Small Business Administration
Some of the key improvements that will take place include:
- An increase in the maximum loan amount to $350,000
- Simplification of underwriting and collateral requirements
- Greater flexibility for lenders like CIC so we are better able to meet borrowers varied financing needs
- Expansion of the program to other mission-driven lenders in the U.S.
The Community Advantage pilot program was launched during the Obama-Biden administration, and was designed to meet the financing and management needs of small businesses in underserved markets. The program was intended to provide mission-oriented lenders, primarily nonprofit financial intermediaries focused on economic development, to increase access to credit for small businesses located in underserved areas, and to provide these business owners with consulting support to help ensure their long-term success.
This is exciting news for the small business community in our region, but these program changes will take time to implement. For the most up to date information, contact one of our CA loan specialists: