Community Advantage
The 7(a) Community Advantage (CA) loan program assists small businesses in underserved markets.
Loan details
Community-based, mission-focused lenders meet the credit, management, and technical assistance needs of small businesses in underserved markets.
Maximum loan size | $350,000 |
Maximum SBA guarantee % | 85% for loans up to $150,000, 75% for loans greater than $150,000, and 90% for International Trade loans |
Maximum interest rate | Negotiated by the lender and borrower subject o SBA maximums |
Program expiration date | September 30, 2023 |
Who can be a CA lender?
The following types of organizations are eligible to become CA lenders:
- Certified Development Companies (CDCs)
- Microloan program intermediaries
- Intermediary Lending Pilot (ILP) program Intermediaries
- Non-federally regulated Community Development Financial Institutions (CDFIs) certified by the U.S. Treasury Department
Lender portfolio requirements
Lenders in the CA program must maintain at least 60 percent of their SBA loan portfolio in underserved markets, defined as follows:
- Businesses located in:
- Low-to-Moderate Income (LMI) communities;
- Empowerment Zones and Enterprise Communities (EZ/EC);
- Historically Underutilized Business Zones (HUBZones);
- Promise Zones;
- Opportunity Zones;
- or Rural Areas;
- New businesses (those in operation for less than two years);
- Businesses that are 51 percent or more owned and controlled by one or more Veterans; and
- Businesses where more than 50% of the full-time workforce is low-income or resides in LMI census tracts.
For instructions on setting up CAFS accounts, SBA Form 1502 reporting, submitting SBA Form 159, and using APIs, please see the Fiscal Transfer Agent Resources (FTA wiki)