SBA Cleans Up the Paperwork and Sunsets the Community Advantage Pilot Program – Grants SBLCs to All

SBA Cleans Up the Paperwork and Sunsets the Community Advantage Pilot Program – Grants SBLCs to All

After 11 years. SBA closes out the “temporary” community advantage program and makes it permanent.

As posted in the Federal Register.

It started as a program to expand access to capital for underserved markets after the Great Recession on February 18, 2011.

Modifications occurred over the years 

● September 12, 2011

● February 8, 2012

● November 9, 2012

● December 28, 2015

● September 12, 2018

● March 2, 2020

● September 30, 2022

On May 1, 2023 SBA announced a new rule providing for the grandfathering of current CA Pilot Lenders to be licensed as CA SBLCs with permanent 7(a) lending authority. This means when SBA authorizes a CA SBLC license for a CA Pilot Lender, the CA Pilot Lender will no longer be making 7(a) loans in a temporary pilot program but will instead be making regular 7(a) loans under a CA SBLC license in the 7(a) program.

Read the notice here