Business News and Blog

SBA Names 20 Community Lenders for New Loan Pilot

Startups, newly established and growing small businesses now have a new source of financing backed by the U.S. Small Business Administration as 20 community organizations have been funded by SBA to start making loans up to $200,000 to qualifying small businesses.

Authorized under the Small Business Jobs Act of 2010, the new Intermediary Lending Pilot Program will provide direct loans up to $1 million to 20 community organizations or intermediaries in fiscal year 2011, which in turn will use those funds to help finance small businesses, mostly in underserved markets.

Designed to expand access to capital to small businesses and drive economic growth and job creation, the program will fund 20 additional community lenders in FY 2012.  The program has an additional year of authority in FY 2013 subject to appropriation by Congress.

“The Intermediary Lending Program is an important new tool to support businesses in underserved markets,” said SBA Deputy Administrator Marie Johns.  “Partnering with community lenders will increase points of access to capital for startups and businesses that have been disproportionately affected by the recession.”

One goal of the pilot program over the next two-to-three years is to assess the intermediary model as an effective tool for increasing lower-dollar lending to small businesses and startups, particularly those in traditionally underserved communities.

The first 20 community lending organizations funded by SBA to participate in ILP are:


  • Ben Franklin Technology Partners, Philadelphia, PA
  • Biddeford-Saco Area EDC, Saco, ME
  • Business Finance Group, Inc, Fairfax, VA
  • Central Minnesota DC, Andover, MN
  • Clay-Platte Development Corp., Kansas City, MO
  • Colorado Lending Source, Ltd., Denver, CO
  • Cooperative Fund of New England, Amherst, MA
  • Fresno County EDC, Fresno, CA
  • Grand Central Texas DC, Austin, TX
  • Grow South Dakota, Sisseton, SD
  • Mahoning Valley EDC, Youngstown, OH
  • NC Minority Support Center, Durham, NC
  • Ohio Comm. Dev. Finance Fund, Columbus, OH
  • Pacific Community Ventures, San Francisco, CA
  • PIDC Regional DC, Philadelphia, PA
  • Rural Nevada DC, Ely, NV
  • Seattle Economic Dev. Fund, Seattle, WA
  • ShoreBank Enterprise Group, Ilawco, WA
  • TELACU Community Capital, Los Angeles, CA
  • UP Business Capital, Marquette, MI

For more information about the ILP program, visit the program website at

To locate your local SBA office, visit

RSS – Start-up News

  • 5 Signs You're Ready to Start a Company
    Think you're ready to start up? Put yourself to the test. Check out the five crucial keys to knowing it's time.Andy Palmer has started at least five companies by my count--and I’d guess he has invested in dozens of others. Based on that experience, I’d consider him an expert when it comes to deciding whether you have what it takes to be an entrepre […]
  • Lesson From Zynga: Not All Founders Make Good CEOs
    It's official: Mark Pincus is stepping aside as CEO of Zynga. It's hardly surprising: Founders rarely make good public-company CEOs.Mark Pincus has left the building. Well, sort of. In a statement issued earlier today, Pincus, the founder and CEO of Zynga, the troubled gaming start-up that's been struggling to maintain its relevance ever since […]
  • Inside Story: Inc.'s 'How I Did It'
    Inc.'s Editor in Chief Eric Schurenberg reveals why the longtime series is always compelling and dramatic read.I had coffee on a recent morning with an entrepreneur, as I often do. What struck me about this founder, an enthusiastic Ohioan named Austin Allison, was how unremarkable his remarkable story was. He is CEO of dotloop, a maker of cloud-based so […]
  • Good News: Your Budget Is Probably Too Pessimistic
    Did you create your budget in gloomier days? Be aware there's new reason for optimism -- and for making mid-year tweaks to your budget.A few phantom green shoots a couple of years back aside, it’s been a long time since entrepreneurs had much in the way of positive economic news to celebrate. But while it’s still not exactly boom times, author and busin […]