Struggling to survive in 2021? You’re not out of options yet!
With the PPP and many other relief efforts being made during the pandemic, you might think: “Wait, they’re bringing out another program?” Not exactly. SBA Community Advantage (CA) loans have been around since 2011 and recently extended until at least September 2022.
What are SBA or CA loans?
Introduced by the U.S. Small Business Administration (SBA), this program is designed to meet the credit, management, and technical assistance needs of small businesses in underserved markets. CA loans provide for mission-oriented lenders, primarily nonprofit financial intermediaries focused on economic development and access to 7(a) loan guarantees for loans of $250,000 or less.
Any small business in an underserved or low-income area can access these 7(a) loans. Like traditional 7(a) loans, a few important differences in eligibility, loan terms, and the lending process can make the lending process a little more unique.
For example, the PPP did not give any guidance to lenders about how to prioritize borrowers in underserved or rural markets. This made it more difficult for these small businesses to qualify for relief or receive funding to prevent closure or layoffs.
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Article by Charles Jackson, President of AFEUSA