What is the SBA 7(a) Community Advantage Loan Program?
Underserved markets have historically struggled with accessing capital. To bridge this gap, the SBA 7(a) Community Advantage Loan Program was established to meet this need. Capital CDC offers Community Advantage as a standalone 7(a) loan or as a companion to the SBA 504 Loan (Commercial Real Estate) and provides financing for items that are ineligible for 504 funding.
Download the Insider's GuideWhat is considered an “Underserved Market”?
Eligibility
- Start-up businesses: Borrowers must provide a business plan and financial projections for business.
- Experience: Business owners must have at least 2 years of experience in the industry.
- Credit: Must have a reasonable personal credit score for principal borrowers.
- Capital Injection: In most cases, borrowers must inject a minimum of 10% of the total project costs.
- Collateral: Borrowers are required to pledge available collateral. Insufficient collateral will not preclude borrower from obtaining financing. However, secondary sources of repayment must be confirmed and documented.
Key Features
The Process
- Capital CDC collects all necessary forms, plus identified collateral
- Submits to the Small Business Administration (SBA) for approval (5 - 10 days)
- Once Capital CDC determines that the loan conditions in the SBA Authorization document are in accordance with its provisions, the loan will be closed, and funds will be disbursed.
Documents
To get started, the borrower must provide the following:
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