American Lending Center Approved as SBA 7(a) Lender
American Lending Center Approved as SBA 7(a) Lender
September 17, 2024
By Bob Coleman, Publisher
Congratulations to John Shen, Leo Zhou, Stella Chang, Bruce Thompson, Steve Thompson and their team for being awarded an SBA 7(a) license to participate as a non-federally regulated lender (NFRL). The Irvine California based lender began operations in 2009, specializing in the EB-5 program that granted visas to foreign immigrants who invested in targeted economic areas in exchange for a visa. The company caters to Chinese investors.
Since 2009, ALC has funded over $1.6 billion in loans throughout the United States, primarily in the hospitality and healthcare sectors. Its recent project is a $50 million project for Calhoun Liberty Hospital in Blountstown, Florida, with the EB-5 funding amount being $9.6 million. In 2024, ALC was ranked number 1986 on the annual Inc. 5000 list by Inc. magazine as one of the nation’s fastest-growing private companies. Over the past 15 years, the company has helped create and retain more than 100,000 Main Street jobs.
What is an NFRL?
Usually, it is a BIDCO (Business and Industrial Development Corporation), a state-regulated financial institution offered in a few states, including California, Tennessee, Louisiana, and Arkansas, to name a few. The SBA normally restricts NFRL lenders to its geographic footprint, and while not mandated in the regulations, it could also impose mission-driven standards on the lender.
“This certification opens the door for us at ALC to help many Californian small businesses get the capital they need to succeed,” said John Shen, ALC’s founder and CEO. “That not only helps our economy and creates jobs, it literally helps dreams come true.”
NFRL Requirements:
– $2.5 Million in Capital
– The same level of review as required by Community Advantage and SPLC (Small Loan Advantage) lenders
– The same internal controls required by SBLCs (Small Business Lending Companies)
– The same lending policies and procedures required by SPLCs
– The same SBA regulatory review process required of all lenders
“The NFRL application process is complex and time-consuming,” said Scott Thompson, ALC Chief Lending Officer. “We’re pleased that we were able to meet all of the SBA requirements to be able to provide this great financing approach.”
“I’m particularly excited about this announcement because the 7(a) loan program gives us another great tool to help businesses succeed and create jobs in underserved communities,” Shen said. “That’s what we are here to do.”
American Lending Center received notice today that the U.S. Small Business Administration has certified ALC as a participant in the 7(a) Guaranteed Loan Program as a Non-Federally Regulated Lender (NFRL).
This certification means that ALC can issue loans that are guaranteed through the SBA. The 7(a) Loan Program is the SBA’s primary program to help startup and small businesses obtain financing when they might not be eligible for loans through normal lending channels.
The SBA does not fully guarantee 7(a) loans – the lender and the SBA share the risk that a borrower may not be able to repay the loan in full. ALC is responsible for originating, underwriting and closing the loan, which can be used for a range of general business needs. Those include operating capital, equipment purchases, property purchases and improvements, and more.
According to the SBA, the application review included review of internal control policies, lending policies and procedures, disclosure of the organization structure and capitalization, and a review of management structure and business plan.
ALC is a non-bank mission-based lending institution headquartered in Irvine, Calif., providing financing and support to small business owners and entrepreneurs since 2010.