The U.S. Small Business Administration’s ‘Preferred Lender Program’ can approve grants through the agency’s ‘Small Loan Advantage Program’ that is going to begin from Feb 15th. The agency has decided to accept applications from mission-focused lenders that have shown considerable interest in making SBA-guaranteed loans through the new ‘Community Advantage Program.’
The ‘Community Advantage’ and ‘Small Loan Advantage’ program have been announced in December so as to increase dollar amount to small businesses and entrepreneurs in underserved communities. Businesses in underserved communities are hardest hit that include minority, women-owned and rural area businesses. Critical support is extended for the entrepreneurs through these two Advantage programs. The programs would help them to find required finance so as to start, grow and translate into job generating companies.
SBA is just offering an advantage platform through these loan programs so as to streamline applications for SBA-guaranteed 7(a) loans up-to $250,000. Advantage loans come with regular 7(a) government guarantee, 85 percent guarantee for loans up-to $150,000 and 75 percent for amount greater than $150,000. There are 610 financial institutions under the Preferred Lender Program (PLP). Starting from Feb. 15th these lending institutions can start approving loans using the New Small Loan Advantage process.
This article was submitted by Raj Tulshan, Director of Business Development of Biz2Credit. Biz2Credit is a small business marketplace that connects entrepreneurs with financing options and advice to grow their business. Send all questions to email@example.com