December 29, 2015

SBA Hot Topic Tuesday — Community Advantage Program Extended through 2020

By Bob Coleman
Editor, SBA Hot Topic Tuesday

OpenforBusinessThe Community Advantage Pilot Program allows CDCs and CDFIs to fund SBA 7(a) loans to small businesses in underserved areas.

Originally set to expire March 2017, SBA has extended the pilot for three years.

SBA has also modified the CA program to incorporate these changes.

  • CA lenders may acquire PLP status
  • CA loans may be sold to the SBA 7(a) secondary market
  • CA loans may refinance debt

SBA is also tweaking its definition of “underserved” markets.

The original CA Pilot Program defined underserved markets to include: Low-to-moderate income communities; Empowerment Zones and Enterprise Communities; HUBZones; New businesses; Businesses eligible for Patriot Express, including Veteran-owned businesses; and Firms where more than 50% of their full time workforce is low-income or resides in LMI census tracts.

The Patriot Express Pilot Loan Initiative expired December 31, 2013; therefore, the applicable language in the revised Community Advantage Participant Guide has been changed to read “businesses eligible for SBA Veterans Advantage.”

Read the notice here