Effective reforms to SBA’s Community Advantage Loan Program have been announced by Vice President Kamala Harris and Administrator Isabella Casillas Guzman.
SBA extends the Community Advantage Pilot Program to fund underdeveloped entrepreneurs
The loan program is a key tool for community development financial institutions, community development companies, micro-lenders and other important mission-based lending partners. It prioritizes equitable access to capital for low-income borrowers and for disadvantaged communities.
Community Advantage Reform praised
The reforms have been praised by nearly 100 organizations, including associates, stakeholders, leaders and industry experts from the small business community. The reforms have also been praised by members of Congress.
Among the multiple reforms listed in the official SBA press release is an extension of the pilot program until September 2024. It was originally scheduled to end this year, but will now run for another two years. The SBA has also lifted restrictions that prevent individuals with criminal backgrounds from accessing the Community Advantage Program.
Reform of ‘Build on Momentum’
Guzman, the SBA’s chief administrator, said of the reforms: “US mission-driven lenders have become a key partner of the SBA in providing much-needed financial relief to underdeveloped businesses across the Kovid epidemic.” Scaling up SBA’s Community Advantage Pilot Program will help us build that momentum, build a wider distribution network, and better ensure that our nation’s accelerated recovery opportunities will be more accessible to entrepreneurs who start and grow their American business a successful business. Following 8
“Community Advantage Pilot Expansion and Reform reflects the central role that President Biden and Vice President Harris have created in this administration to create equity and eliminate historical inequalities and barriers that have limited economic growth for all.” Thanks to Vice President Harris, a longtime champion of the Community Development Financial Institution and other mission-driven lenders, for supporting this important change and helping to improve access to capital for more American entrepreneurs. “
Small business leaders respond
Many small business leaders and local organizations have responded positively to the reforms. One such person, John Arensmeyer, president and CEO of Small Business Majority, describes the value of the loan program:
“These loans allow small business owners the flexibility of the capital they need to sustain their operations, including payroll cover, business improvement, purchase of supplies and hiring. While many small businesses are still struggling to recover from the epidemic, the time has come to support the entrepreneurs who need it the most to take the next step in expanding and expanding this important program. ”