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SBA Community Advantage Loans

Community Advantage (CA) is a pilot loan program introduced by the U.S. Small Business Administration (SBA) to meet the credit, management, and technical assistance needs of small businesses in underserved markets. This program can be used by start-up or seasoned businesses. 

The 504 Company offers access to the Community Advantage Program. As a national leading SBA CA lender, The 504 Company has processing and eligibility expertise that its partner banks can leverage to increase their SBA loan activity. In addition, The 504 Company will often take "Another Look” at SBA 7(a) loan requests that have been declined by banks. See below for the basic parameters of the Community Advantage loan program.


 Loan Limits:  $25,000 to $250,000
 Eligible Uses of Funds: Basic uses include working capital, equipment purchases, real estate acquisition and construction, leasehold improvements, business acquisitions, and debt refinance. Check with your 504 Company representative (Senior Loan Officers) to discuss further.
 Down Payment Requirements: Determined on a case by case basis.
 Maximum Loan Term: The loan term is determined by the use of funds. For example, equipment purchases typically qualify for 5, 7 or 10 year terms depending on the useful life of the equipment. Working capital loans can have a term of up to 10 years depending on cash flow needs. For debt refinance, the loan term is based on the remaining useful life of the asset financed with the original debt.
 Interest Rate: Typically variable but determined on a case by case basis.
 Collateral Required: SBA requires that all 7(a) loans be collateralized to the maximum extent possible up to the loan amount. If business assets do not fully secure the loan, available personal assets of the owners are required as collateral. SBA will not decline a loan solely on the basis of inadequate collateral.
 Size Standard Requirements

The small business applicant and affiliates must have combined net worth of less than $15 million and combined net income of less than $5,000,000 averaged over the last two years.

 SBA Guarantee Fees: Ranges from 3.00% to 3.75% of the guaranteed portion of the loan and may be financed.


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