SBA Community Advantage Program Changes Expand Access and Simplify Borrowing

Small businesses are vital to the American economy, creating two-thirds of new jobs and 44% of the country’s financial activity — and their impacts extend far beyond employment. Research shows that communities with a higher proportion of small businesses have higher rates of economic growth, stronger social networks, and improved health outcomes. Yet, in economically disadvantaged and minority communities, systemic disparities in access to capital present significant obstacles to business creation and growth.

To address these inequities and help more small businesses access capital, the U.S. Small Business Administration (SBA) guarantees loans through the Community Advantage program, which allows entrepreneurs who would not otherwise have access to capital, such as those from disadvantaged communities, to borrow up to $350,000 to start or grow their businesses.

Unlike traditional business loans, Community Advantage loans are financed by alternative lenders, including certified development companies (CDCs) and community development financial institutions (CDFIs). Because these lenders aren’t traditional banks, they can offer additional flexibility and provide funds to more borrowers.

Recent revisions to the program’s standard operating procedures further expand eligibility and streamline the application process to make this vital funding source available to more businesses.

If you’re considering applying for a Community Advantage loan, here’s what you should know about the changes.

READ MORE 👁️👉🏾 https://cdcloans.com/sba-7a-community-advantage-changes-small-business-loans-2023/ https://cdcloans.com/blog/