Small Business Finance News

SBA Sets Up Loan Program For Underserved Communities

Written by Jenna Weiner
Published: 12/20/2010

Agency rolls out Community Advantage and Small Loan Advantage

The U.S. Small Business Administration recently unveiled two new lending programs in order to give historically underserved communities access to credit.

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The two lending programs, Community Advantage and Small Loan Advantage, seek to increase the number of SBA 7(a) loans, the government-guaranteed loans that can be used for a variety of business needs. The SBA's Administrator, Karen Mills, said that her agency wanted to increase the amount of capital flowing into select communities.

"Over the last two years, we've seen lending to all small businesses tighten up, and that tightening has been even greater in traditionally underserved communities, including among minorities, women and in rural areas," Mills said. "These new Advantage initiatives are aimed directly at getting more loans into these markets so these small business owners can get the capital they need to start or grow their business."

The SBA made other lending news for small business when it announced that it would be teaming up with the University of Wyoming. The SBA's Federal and State Technology partnership gave the university $100,000 in funding to be handed out to 20 organizations in the state.

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