The SBA is Expanding its Community Advantage Pilot Program to Provide Funding to Underserved Entrepreneurs.

Vice President Kamala Harris and Administrator Isabella Casillas Guzman announced significant changes to the SBA's Community Advantage lending program.

The loan program is an important resource for Community Development Financial Institutions, Community Development Companies, microlenders, and other mission-based lending partners. It promotes equal access to financing for low-income and disadvantaged borrowers.

Reforms to Community Advantage are applauded.

Around 100 groups, including small business community supporters, stakeholders, leaders, and industry experts, have praised the improvements. Members of Congress praised the improvements as well.

Among the numerous reforms outlined in the official SBA press release is the extension of the pilot program until September 2024. It was supposed to finish this year, but it has been extended for another two years. The SBA has also lifted the limits that prevented those with criminal records from participating in the Community Advantage program.

'Building on Momentum' Reforms

"America's mission-driven lenders have been a crucial partner to the SBA in bringing much-needed financial help to neglected companies throughout the COVID epidemic," said Administrator Guzman of the revisions. Scaling the SBA's Community Advantage pilot program will allow us to build on that momentum, create a broader distribution network, and better ensure that the opportunities created by our nation's accelerating recovery are available to more entrepreneurs pursuing their American dream of starting and growing a successful business.

"The Community Advantage pilot extension and improvements underscore the fundamental role that President Biden and Vice President Harris have devoted to establishing equality across this Administration and eradicating past disparities and impediments to economic progress for all." "I'd like to thank Vice President Harris, a long-time supporter of Community Development Financial Institutions and other mission-driven lenders, for his support of this critical move and for helping to increase access to funding for more American businesses."

Small Business Owners React

The improvements were well received by many small company owners and community organizations. One such person, John Arensmeyer, president and CEO of Small Business Majority, described the loan program's value as follows: "The Community Advantage Pilot Program is a vital resource that has helped mission-driven lenders provide more capital to underserved entrepreneurs, particularly those owned by women and people of color."

"These loans provide small company owners with the capital flexibility they require to run their operations, such as covering payroll, making business renovations, purchasing supplies, and adding workers." While many small companies continue to struggle to recover from the epidemic, now is the time to take the next step in extending and expanding this essential program to help entrepreneurs who need it the most."