Community Advantage Loan

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The U.S. Small Business Administration Community Advantage Loan program is designed for new and existing businesses that need loans under $250,000. The loan can be used to finance a startup company or expand an existing small business or buy real estate. The SBA guarantees 85 percent of loans up to $150,000 and 75 percent of loans greater than $150,000. [1]

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Launched in 2011, the Community Advantage program intends to expand access to capital in underserved communities by allowing mission-focused, community-based financial institutions – including a Certified Development Company – to offer this loan to small businesses. Greater access to credit can help spur firms to grow and hire, giving the economy a boost. [2]

The SBA designates specific lenders throughout the United States to offer Community Advantage loans. The first six lenders [3] selected for the program were: CDC Small Business Finance, California; Cen-Tex CDC, Texas; The Progress Fund in Greensburg, Pennsylvania; Eastern Maine Development Corporation, Maine; Idaho-Nevada Community Development Financial Institution, Idaho; Kentucky Highlands Investment Corporation, Kentucky. Thirty-four other lenders have since been approved. [4]

Loan Size and Terms

Eligibility

There are specific eligibility criteria for the Community Advantage loan, which include credit history, cash flow and industry experience. A designated Community Advantage lender can help a small business owner determine if they can qualify by reviewing an eligibility form. [6]

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References

  1. ↑ "Community Advantage". U.S. Small Business Administration. Retrieved 13 December 2012.
  2. ↑ Clifford, Catherine. "New small business loans approved in 'minutes'". CNN Money. Retrieved 13 December 2012.
  3. ↑ "SBA Approves First Six Lenders to Start Making Community Advantage Loans". U.S. Small Business Administration. 28 April 2011. Retrieved 13 December 2012.
  4. ↑ "Community Advantage Approved Lenders". U.S. Small Business Administration. Retrieved 13 December 2012.
  5. ↑ "Community Advantage Participant Guide" (PDF). U.S. Small Business Administration. 13 November 2012. Archived from the original (PDF) on 12 May 2013. Retrieved 13 December 2012.
  6. ↑ "Eligibility Information for Community Advantage (CA) Loans" (PDF). U.S. Small Business Administration. Retrieved 13 December 2012.
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