New Community Advantage Small Business Lending Companies Bring More Financing to Main Street and Rural America
WASHINGTON, Jan. 16, 2025 (GLOBE NEWSWIRE) — Today, Administrator Isabel Casillas Guzmanthe head of US Small Business Administration (SBA) and voice in President Biden’s Cabinet for America’s more than 34 million small businesses, announced additions to the Community Advantage Small Business Lending Company (CA SBLC) program. SBA is adding more nonprofits to the program to help underserved markets. The Biden-Harris administration updates further increase 7(a) loan access for veterans, women, rural areas, and low- to moderate-income communities.
“SBA’s vital capital access programs help move our economy forward by empowering more small businesses to create jobs and uplift local communities.” said SBA Administrator Guzman. “The Biden-Harris administration’s expansion of the SBA Community Advantage SBLC program fills capital gaps and helps ensure that underinvested communities receive the resources they need to start and grow successful businesses. Our new CA SBLC lenders will support entrepreneurs in underserved communities so they can achieve their American dreams of business ownership.”
CA SBLC licenses are for non-profit organizations serving as non-depository lenders. A CA SBLC license allows responsible lending organizations to underwrite small business loans in underserved markets using the SBA’s 7(a) government guarantee—reducing borrower costs and lender risk.
The SBA has approved two new CA SBLCs, with additional lenders under consideration to be announced soon. With this expansion, SBA expands its capital network into new markets.
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Disability Opportunity Fund (Disability Fund, Inc.) in Rockville Centre, NY, is a Community Development Financial Institution, launched in April 2007 and operating nationally. As a 501(c)(3) tax-exempt organization, DOF provides funding, technical services, and policy advocacy to increase access for persons with disabilities to obtain appropriate and affordable housing and related services in the entire United States. It plans to build on this work to address credit gaps in low- to moderate-income communities and focus on smaller loan amounts, increased loan volume and targeted outreach to real estate developers. , communities and organizations serving the disability market and any participating groups. in creating access to housing, schools or any other project for persons with disabilities.
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Action Opportunity Fund (Action Opportunity Fund Community Development, Inc.) in California is a Community Development Financial Institution that provides support to small business owners by offering them loans at fair prices, educational resources, training and support networks in English and Spanish. AOF supports entrepreneurs who are women, people of color, or low to moderate income to secure capital and resources. For more than 30 years, AOF has served a client base that is over 90% women, people of color, and/or low to moderate income. Businesses supported by AOF have historically had a survival rate of 96%, compared to the national small business survival rate of 50%.
