Impactful reforms to the SBA’s Community Advantage loan program have been announced by Vice President Kamala Harris and Administrator Isabella Casillas Guzman.
There was good news regarding the SBA Community Advantage Pilot Program today.
The program which is designed to prioritize equitable access to capital for low-income borrowers and those from underserved communities received several enhancements.
Among the reforms being announced today for the Community Advantage program, the SBA will:
- Extend the pilot program to September 30, 2024, which was set to end in September 2022.
- Increase the maximum loan size up to $350,000, which represents an increase over the current levels of $250,000.
- Remove the restrictions that can keep individuals with criminal backgrounds from accessing the Community Advantage program.
- Simplify underwriting and collateral requirements for borrowers and lenders, including increasing the maximum unsecured loan size from $25,000 to $50,000, removing barriers that disproportionally impact underserved borrowers.
- Introduce additional abilities for lenders to make loan modifications that meet borrowers where they are to best serve their capital needs.
The SBA’s goals for the Community Advantage program include:
- Increasing access to credit for small businesses located in underserved areas;
- Expanding points of access to the SBA 7(a) loan program by allowing participation of non-traditional, mission-oriented lenders; and
- Providing Management and Technical Assistance (M&TA) to small businesses, as needed.
NEW-WBC. Program Director