The U.S. Small Business Administration (SBA) has announced enhancements to its Community Advantage Small Business Lending Company (CA SBLC) program. The initiative, led by Administrator Isabel Casillas Guzman, aims to expand access to 7(a) loans for underserved communities, including veterans, women, rural areas, and low-to-moderate income groups.
“The SBA’s vital capital access programs help drive our economy forward by empowering more small businesses to create jobs and lift up local communities,” stated Administrator Guzman. She emphasized that the expansion would "fill capital gaps and help ensure that underinvested communities get the resources they need."
CA SBLC licenses are granted to nonprofit organizations functioning as non-depository lenders. These licenses enable them to offer small business loans in underserved markets using the SBA’s 7(a) government guaranty, thereby reducing costs for borrowers and risks for lenders.
Two new CA SBLCs have been approved: Disability Opportunity Fund in Rockville Centre, N.Y., which provides financing and advocacy for people with disabilities; and Accion Opportunity Fund in California, which supports women entrepreneurs and those from minority or low-income backgrounds with fairly priced loans and resources.
Katie Frost of the SBA Office of Capital Access highlighted the importance of mission-driven lending: “These new CA SBLC lenders continue to strengthen this community within SBA lending.”
The CA SBLC license was introduced in 2023, accommodating over 140 mission-based lenders within SBA lending. In fiscal year 2024 alone, community advantage lending supported over $196 million in SBA loans—an increase of 40% compared to the previous year.