New at the SBA
Earlier this year, the Small Business Association (SBA) made changes to its programs that will widen access to government-backed small business loans. The change allows more non-bank lenders to offer SBA loans, expanding access to funding for underserved businesses. Additionally, implified lending criteria will save time on loan documentation, providing a more efficient path to approval.
THE COMMUNITY ADVANTAGE SBLC
The SBA is also implementing the Community Advantage SBLC license for nonprofits and mission-oriented lenders who wouldn’t otherwise qualify to be SBA lenders. These lenders primarily focus on underserved markets, including startups and minority-, veteran-, and women-owned businesses. Community Advantage lenders also work in rural and low-income communities.
APPROVAL CRITERIA
To qualify for an SBA loan, a business must be considered creditworthy and reasonably able to repay the loan. The SBA previously considered nine factors to determine creditworthiness. The new rules consider just three:
- Credit score or history
- Business earnings or cash flow
- Collateral
Talk with your professional advisor to learn more about SBA’s new rules and loans.
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