The Lowest-cost Working Capital Loans under $350,000
The Community Advantage Loan Program is a loan program that allows businesses to build success in underserved markets, such as businesses who:
- have limited financial resources;
- are located in an underserved community;
- need management and technical assistance;
- are start-ups and in business less than three years; and
- are interested in opportunities for growth.
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Community Advantage is an excellent loan choice for new and existing businesses that need between $50,000 and $250,000 in business capital. The loan can be used to start or expand your business. The SBA guarantees a portion of each loan. This makes it possible to extend financing that may not be available through banks. Applicants must show their ability to repay the full loan amount and meet other guidelines to be eligible for a Community Advantage loan.
Want to find a Community Advantage lender? List is below!
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| Photographed above: Top Left - Ingham’s Powder Coating, Lancaster, PA (EDC Finance Corporation) | Center Left - Seven Seas Home Leisure Center, Clarion, PA (ABCD Corporation) | Bottom Left - 1UpSports Austin, Texas (Texas Certified Development Company) | Right - PESCM, San Rafael, CA (TMC Financing) |
Terms and Conditions
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| Maximum Loan Amount |
$350,000 |
| Maximum Interest Rate |
$50,000 or less: Prime + 6.5 %
Greater than $50,000 up to and including $250,000: Prime + 6.0%
Greater than $250,000 up to and including $350,000: Prime + 4.5%
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| Terms |
25 years for Real Estate
7-10 years for working capital, inventory, business acquisitions, tenant improvements, and start-up expenses |
| Percent of Guaranty |
85% guaranty for loans of $150,000 or less
75% guaranty for loans of $150,000 or more |
| Maturity |
Generally depends on borrower repayment ability. Maximum 10 years for working capital; and up to 25 years/or life of the asset for fixed asset purchase or refinance. |
| Use of Proceeds |
Loans may not be used for revolving lines of credit, otherwise funds may be used for any normal business purpose, except those specifically prohibited by Small Business Administration (SBA). |
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Contact
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Daniel Upham
Chief, Micro Enterprise Division
Office of Financial Assistance
United States Small Business Administration
Washington, DC 20416
Phone | (202) 205-7001
Email | daniel.upham@sba.gov
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Much of above content borrowed from SBA resources. More information available on the SBA website.
Participating CDC Members
View the list below to see whether there are any Community Advantage participants in your state! Then, look them up in our CDC directory for contact information.
Are you a CDC that would like to participate in the Community Advantage program? Please login and visit our informational page to get started on the application process.
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