SBA is committed to expanding access to capital for small businesses and entrepreneurs in underserved communities so that we can help drive economic growth and job creation. SBA and U.S. Department of Commerce have conducted studies that show the importance of lower dollar loans to small business formation and growth in underserved communities. The need to encourage lenders to provide an increased number of lower-dollar loans to small business is evident.

One of the initiatives SBA rolled out aimed at increasing the number of lower-dollar loans in the underserved communities is called the Small Loan Advantage Program. This initiative allows lenders to get a pre-qualification indication from SBA that the applicant business has sufficient creditworthiness to warrant giving the applicant full consideration for financing.

– Geographic Coverage: Nationwide
– Loan size: $5,000 to $150,000. up to $350,000
– Rate: starts from 6%
– Term: 10 years with no prepayment penalty
– Credit Score: Good credit (Minimum Credit Score 620)
– Use of Funds: Working capital for your business
– Timing: Pre-qualify in a day, Funding in 5 – 7 days after all loan documents and information complete
– Security Required: Lien on fixed business assets required for loans $26,000 or more. Principal owners’ personal guarantee required.
– Business Requirements: 2 years in business, Product, service, manufacturing, retail, medical, contractor, among many others. $50,000 to $5,000,000 in annual revenue with cash flows to support loan payment. 1 to 20 employees.
– Cash Flow: Minimum business and global cash flow coverage, Demonstrated by tax returns, credit reports and interim financials
– Liquidity: <$25K loans require liquidity coverage for last 3 months, Demonstrated by bank account balance
– Public Records: No judgments, tax liens, bankruptcies or foreclosures within past 3 years

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