Community advantage program

It is particularly valuable to entrepreneurs and business owners who aim to start or expand enterprises. The program helps secure loans for small businesses in typically underserved communities, with a specific emphasis on ones that operate in public interest fields.

The primary goal of the program is to expand the types of lenders who work with the SBA and, as a result, the communities that the SBA can reach. Lenders may charge no more than the prime interest rate plus 6 percent. At time of writing the Community Advantage loans pilot program is scheduled to expire in Like many SBA loan programs, the Community Advantage Loan program may be useful to business impacted by the economic fallout of the coronavirus pandemic.

Most SBA loans are handled by traditional banks. This makes them a good fit for many small businesses that want to operate in wealthy areas and for entrepreneurs who can raise a significant amount of money as their own share in the loan. The Community Advantage program tries to expand SBA lending to small businesses in underserved communities.

A lender also must have one of four statuses to participate in the program:. Typically, borrowers have been in business for fewer than three-years and do not qualify for traditional financing elsewhere.

Your application for a Community Advantage loan must show that you are a private, for-profit business, for example, with fewer than employees and no delinquent loans with the agency. As with most other SBA loans, borrowers apply through the lender. This lender will set many of the specific requirements, such as credit score and up-front capital requirements, and establishes interest and payment plans with the borrower. In practice many Community Advantage lenders tend to show flexibility when it comes to credit issues or capital contribution.

However, this is not a requirement of the program. Here is a list of the most active SBA 7 a lenders. However, if you choose to work with CDC Small Business finance, the loan process is just 3 easy steps:. There are several ways that you can use your Community Advantage loan to help your small business. Year after year we help small business owners get the financing they need to support their business dreams. As a mission based lender we are more flexible than a bank and have provided loans to more than 12, borrowers and counting.

One differentiator of working with CDC Small Business Finance is that we focus on your whole story, not just the numbers. I wasn't wondering what was next, it was very planned out and easy and amazing, amazingly helpful.

Our loan officers will work with you directly and are available to answer questions, explain the process and help ensure you get a loan that best supports your business goals. Click here to learn more about our loan officers. Check out our FAQ page to see the answers to the most commonly asked questions. Industry Specialists. CDC Small Business Finance understands the importance of working with someone who understands your industry to help you get the right financing.

Our loan officers are experts and help entrepreneurs in every industry from restaurants to automotive to salons to medical and much more.

Here are a few highlighted industries that have dedicated experts:. Success Stories Loans. Goodman Scholarship Careers Industry Partners. General Info Loan Experts Locations. Start Now.