Community Advantage is a pilot initiative by the SBA aimed at increasing access to capital for underserved communities and borrowers. The maximum loan guarantee size is $250,000 and the SBA will guarantee up to 85 percent of the loan. In some cases, no private lender is required. Uses include fixed assets, buildings and component working capital if a fixed asset is a portion of the request.
Taverns, liquor stores, and gun shops are not eligible for financing.
A project can be funded with private lender and at times without:
Maximum Loan Size: $250,000
Guarantee: 85 percent for loans up to $150,000 (guarantee fees waived) and 75 percent for those greater than $150,000 (3% guarantee fee).
Loan amortization is based on the useful life of the assets up to 20 years, and matches the term of the participating lender
Fixed interest rates are set at time of loan apporval, and are below current market rates.