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 http://www.sba.gov/content/intermediary-lending-pilot.
To locate your local SBA office, visit www.sba.gov/about-offices-list/2.