New SBA Program Will Increase Availability of Small Loans for Small Businesses

Starting in the spring, a new Small Business Association (SBA) loan program — the Community Advantage loan program— will increase the availability of loans (up to $250,000) to: 1) small businesses, 2) firms that are less than two-years old or 3) those owned by veterans. The program specifically will target businesses in low- to moderate-income communities. Currently, small businesses face difficulty receiving loans of this size due to perceived risk involved (historically high default rates). Nonprofit institutions and banks that participate in the SBA's Preferred Lender Program will be the providers of these SBA guaranteed loans. To incentivize lenders, loans will guarantee up to 85 percent. SBA will accept applications from interested lending institutions starting March 15. Read about the program ...