SBA Community Advantage: Loans for Underserved Small Businesses
The Small Business Administration (SBA) offers various loan programs to provide financial assistance to businesses that face challenges in accessing traditional financing. In order to specifically target underserved communities, the SBA created the Community Advantage (CA) Pilot Loan Program in 2011 to close the credit gap and increase access to smaller-dollar loans to early stage, veteran-owned and/or businesses located in low income or rural communities. Under the CA pilot program, B:Side Capital has deployed over $13.4 million to 82 small businesses to help create or retain 426 jobs.
While the pilot program has sunsetted, in April 2023, the SBA granted Community Advantage Small Business License Company (CA-SBLC) to mission-based lenders, like B:Side Capital, to provide smaller dollar SBA 7(a) loans. This ensured that mission lenders could continue to partner with the SBA in supporting underserved small businesses across the country.
Benefits of the Program
Mission-based 7(a) loans up to $350,000
Provides loans to small businesses that don’t meet conventional credit requirements
Increases access to capital for underserved small businesses
Ability to get financing despite the lack of sufficient collateral
Adjustable, reasonable interest rates
Low down payments
Long repayment terms up to 10 years
Suitable for a wide range of business purposes including long-term working capital, equipment purchase, debt refinance and business acquisition and expansion
SBA guarantee up to 85% of the loan
"B:Side Capital is excited to have another loan option to help more small businesses get the capital they need. We are thrilled to be able to offer the Community Advantage loan as a mission based SBLC."
-Laurel Walk, B:Side Capital’s Chief Lending Officer and National Association of Development Companies (NADCO) Board Member
With the CA-SBLC license, B:Side can provide small 7(a) loans in Colorado, Arizona, New Mexico and Utah. If you or a business you know is interested in applying, please fill out our quick eligibility check. If you are in need of financing but want to explore other options, check out the SBA 7(a) and SBA 504 loan programs or contact us with questions.