The Small Business Administration announced two lending initiatives today, Small Loan Advantage and Community Advantage, aimed at making modest loans to small businesses quickly.
The SBA’s new Small Loan Advantage program permits larger banks, or preferred lenders, to make loans through its flagship 7(a) lending program up to $250,000 and get them approved quickly by submitting a single-page credit memo. Loans submitted online will be approved within one business day.
As with a normal 7(a) program, the loans are guaranteed at 85% up to $150,00 and 75% over $150,000.
The SBA’s second initiative, Community Advantage, aims to get SBA-backed loans to underserved communities, such as minority, women, and vetran-owned businesses.
Both programs are supposed to be up and running by March 15, 2011.