2 Pages + 10 Minutes Can Equal $250,000 For Small Businesses

Economic recovery is not going to happen by selling out to large corporations or outsourcing industry to other countries. What will work is what has always worked, the grit and determination of the American people and the ingenuity they have when given the opportunity; in other words, small businesses and start-ups.



While citizens see that and the government agrees, the banks have been hesitant to back the big ideas of the would-be business owners. Now they are getting some incentive.

The Small Business Administration (SBA)’s new Advisory Council on Underserved Communities’ chairperson, Catherine Hughes, said a written statement, “Many entrepreneurs and small business owners across the country have enormous potential to drive economic growth and create good-paying jobs in their local communities, but too often they face barriers in fulfilling that potential,”

The SBA is launching two 3-year initiatives that they hope will break down those barriers. First is called the Small Loan Advantage. They aim to ease the frustrations of the loan process for both banks and small businesses getting money quickly to communities that need it the most. Approximately 630 banks have been qualified as preferred lenders and can instantly approve the loans. Under the SBA’s 7(a) loans program funds are guaranteed up to 85% on loans under $150,000 and 75% on loans up to $250,000.

They have simplified the application process to two pages and applicants who file online can receive approval in minutes. Folks who file the old fashioned way will typically have to wait a whole day to hear back but it could be as many as ten. Another perk to the Express Programs is that filers can even receive the benefit of lower loan rates.

The other initiative the SBA will be testing is called the Community Advantage. Its purpose is to provide capital to businesses developed in rural communities, as well as those by women, minorities, and veterans. This program will offer help with experience and expense. Borrowers have access to advisors to help them prepare business plans.

Alternative lenders will also be accessible. Community Development Fund Institutions, approved micro-lending intermediaries, and nonprofit Certified Development companies who were previously denied will now have support from the SBA on 7(a) loans to increase lending opportunities.

Applications are still being accepted to become preferred lenders and borrowers can expect to start seeing the benefits of both of these programs on March 15th.

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By Heather Fairchild - Heather is a writer and blogger for Nexxt. She researches and writes about job search tactics, training, and topics.