SBA Community Advantage Loan by Tom Markel
The SBA is committed to expanding access to capital for small businesses and entrepreneurs in underserved communities so that we can help drive economic growth and job creation. SBA is rolling out two new initiatives aimed at increasing the number of loans in these communities.
"Businesses in underserved communities, including minority and women-owned as well as businesses in rural areas, have been among the hardest hit by the recent economic downturn," said SBA Administrator Karen Mills. "These two new Advantage initiatives can provide critical support to help these businesses and entrepreneurs get much needed financing to start and grow, which will translate into more jobs in these communities."
SBA and U.S. Department of Commerce studies have shown the importance of lower dollar loans to small business formation and growth in underserved communities. Now both SBA - Small Loan Advantage Loan and SBA - Community Advantage Loan programs will offer a streamlined application process for loans up to $250,000.
SBA Community Advantage loans is a pilot loan program for underserved communities.
Maximum Loan Size: $250,000
Approval Times: Most Community Advantage loans will be approved within 5 to 10 days.
Paperwork: Community Advantage features streamlined paperwork, with a two-page application for borrowers.
SBA loans are based on several factors, which are usually the same factors involved in granting any other type of business loan. If you're applying for small business loans, you'll need to provide a thoughtful and thorough business plan. You may also be asked to provide management profiles and proof of credibility as a legitimate enterprise.
Many people think SBA loans are only for businesses in trouble. Often, SBA loans are granted during the gap time between when a company billed out for goods or services and when they receive payment. A company may be experiencing growth on paper during this time, but funds may not be available for additional investments. Your best resource for SBA loans is iBank.com.