New Bedford Economic Development Council (NBEDC) has several lending programs. Now, the SBA is giving a new designation to NBEDC that will help the council to extend capital in New Bedford.
NBEDC is certified as Community Advantage 7(a) lender by the SBA. This certification by the SBA will enable the Economic Development Council to lend more loans to communities that are ‘economically-challenged’ or traditionally underserved.
This organization is the first lender in Massachusetts that has qualified as Community Advantage 7(a) lender. This is a pilot initiative for three years and NBEDC has been chosen as the first lender that would make funds available to financial institutions so that underserved communities can be given financial support.
The new designation of NBEDC is intended to make loans available in low-to-moderate income communities. With this new development, businesses engaged in empowerment zones, HUB Zones and enterprise communities are expected to receive loan grants. Even start-ups and veterans are eligible to find loans. The application procedure and approval process have become easier and streamlined due to this new designation of the NBEDC.
Federal government gives a guarantee of 85 percent for Community Advantage 7(a) loans. So, the dollar value of the loan amount can range to the limit of $250,000. It is the extent of guarantee that will allow NBEDC to make more capital available so as to drive in economic growth and create jobs. The guarantee gives confidence and so banks are expressing interest to deepen financial relationships with NBEDC.
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