March 30, 2022
C-Suite Wednesday – Community Advantage Program is Extended and Revised
“America’s mission-driven lenders have been a critical partner to the SBA in getting much-needed financial relief to underserved businesses throughout the COVID pandemic. Scaling the SBA’s Community Advantage pilot program will help us build on that momentum, create a broader distribution network and better ensure the opportunities of our nation’s accelerating recovery are accessible to more entrepreneurs pursuing their American dreams of starting and growing a successful business,” says Administrator Isabella Casillas Guzman.
Today, Vice President Kamala Harris and Administrator Isabella Casillas Guzman announced that the Community Advantage Pilot Program will be extended by two years and is set to end on September 30, 2024. These are the other key reforms to the program:
1. The maximum loan size is increased to up to $350,000 from its previous lending level of up to $250,000.
2. Restrictions preventing individuals with criminal backgrounds from accessing the program are removed.
3. Underwriting and collateral requirements have been simplified for borrowers and lenders.
4. Lenders will have additional abilities to make revolvers and lines of credit, interest-only periods, and other loan modifications.
5. The packaging fee guidelines will be redefined, allowing CDFIs, CDCs, and mission lenders participating in the Community Advantage Program to increase volume to underserved communities.
Guzman continues, “The Community Advantage pilot expansion and reforms reflect the central role that President Biden and Vice President Harris have given to building equity across this Administration and removing historic inequities and barriers that have limited economic growth for all. My thanks to Vice President Harris, a longtime champion for Community Development Financial Institutions and other mission-driven lenders, for supporting this important change and helping to improve access to capital for more American entrepreneurs.”
SBA Press Release