There are two loan programs from the SBA that provide funding or businesses located in rural or small communities and communities with economic challenges. These programs are as follows:
The Small Rural Lender Advantage Loan was developed to encourage economic growth in smaller communities, particularly those communities facing significant economic challenges. The loan process has been streamlined for this loan and can be processed within 3-5 days. SBA provides an 85% guarantee on loans valued at $150,000 or a 75% guarantee for those loans valued at more than $150,000.
The B&I Guaranteed Loan Program is available to businesses located in a rural communities. The maximum loan amount is $25 million with guaranties ranging between 60 and 80% of the loan value, depending on the size of the loan. Preference is given to those businesses located in communities with a population of less than 50,000.
In addition, the SBA offers advantage loans to help serve underserved markets and encourage lenders to make smaller-sized loans. These programs are as follows:
The Small Loan Advantage is designed to encourage larger lenders to make smaller sized loans. The maximum loan value is $250,000 with guaranties from the SBA available between 75 and 80% of the total value. The loan process the small loan advantage has been streamlined with approval times requiring only minutes through electronic submissions.
The Community Advantage Loan, like the Small Loan Advantage, has a maximum loan amount of $250,000 with guaranties from the SBA ranging between 75 and 80% of the total loan value. This loan was designed to serve underserved markets. Loan turn-around time is estimated around 5-10 days.