The SBA Community Advantage program helps lower-income entrepreneurs access the capital they need to keep their businesses up and running. It also helps borrowers who are located in underserved communities. Recently, the SBA Community Advantage loan program underwent some essential reforms. Among the more notable reforms is that the SBA will now extend this program until September 2024. It was supposed to end this year. However, given the current climate and the financial difficulties that many smaller businesses face, the SBA has decided to extend the program.
Good News for as the SBA Community Advantage Program Gets Extended
Many people herald the reforms listed in the SBA‘s most recent communication regarding this particular program. The newest changes mean that access to capital will be even more fairly distributed. In other words, there will be more equitable access across-the-board to loans and much-needed funding, even for companies and borrowers with lower incomes.
Part of the reason for the extension is to help accelerate the country’s recovery. Following the pandemic’s peak, businesses have been grappling with labor shortages, supply chain issues, and steadily increasing inflation rates. This makes it almost impossible for some firms to stay afloat. The SBA Community Advantage program is one way to help entrepreneurs navigate their way through this challenging period.
Many business leaders and politicians are responding quite positively to the extension of the SBA Community Advantage pilot program. One reason is that it does focus on underserved companies and those owned by women and people of color. There is more flexibility for such businesses to get the money they need to cover payroll, equipment purchases, and hiring employees. Minority-owned businesses have a better chance of getting loan funds because of these types of programs. Its extension is thus highly welcomed, especially now.
Other Means of Funding Your Small Business
Beyond SBA-backed loan programs, smaller businesses have several channels for accessing the money they need. Alternative and online lenders are busily engaged in helping companies across the country get the cash they need, whether to stay afloat or engage in meaningful projects to help grow their business.
If you need money, for example, for purchasing new IT equipment, turning to an alternative lender here can be the best solution. The process is relatively simple. You fill out an online application, and a representative from the company will walk you through every step of the way.
When applying for a small business loan from an alternative or online lender, some documents and information, you may want to have on hand:
- Tax returns, both business and personal
- Bank statements, possibly up to six months
- Articles of incorporation
- Financial statements to include balance sheets, profit, and loss statements, and cash flow statements
- Business leases
- Information and specs on the equipment you may be purchasing
- A business plan
You might, of course, need to present more documentation for your loan application. This will depend on the lender that you work with. Also, keep in mind that you want to think carefully about the type of loan you apply for. From lines of credit to merchant cash advances, numerous financing solutions exist for smaller companies. So if you do need an infusion of cash, lenders are willing to help. The key is to maximize the value of the loan that you do receive.
First Union Lending is Here for You
We work with companies across the country, from Texas to Oregon and everywhere. Our job is to help you get the cash you need right now, not weeks or months from now. We offer short-term loans, SBA loans, and lines of credit, among other financing types. Even for those who may not have excellent credit, we might still have a funding option available for you. This is because we take a big-picture approach to lending. We do not focus on any one number or score. Instead, we want to know who you are and what value you bring to the table. Call today and let’s get started.