WASHINGTON, Dec. 23, 2024 (GLOBE NEWSWIRE) -- Today, Administrator Isabel Casillas Guzman, head of the U.S. Small Business Administration (SBA) and the voice for America’s more than 34 million small businesses in President Biden’s Cabinet, announced that the SBA has granted Small Business Lending Company (SBLC) licenses to four lending institutions committed to expanding access to capital to underserved markets. The awarding of four new SBLCs—Cooperative Business Services, A10 Capital, Lafayette Square, and Stonehenge Capital—marks the SBLC program’s second expansion during the Biden-Harris Administration and the second made in 40 years. This broadens the availability of 7(a) loans in low-income and other underserved communities nationwide from their locations in Ohio, Idaho, Washington, D.C., and Louisiana, respectively.
“For the second time in over 40 years, the Biden-Harris SBA welcomes new lenders with a shared mission of filling capital gaps in underserved communities – the very same communities who are starting businesses at the highest rates in America today,” said Administrator Guzman. “With private markets playing an increasingly important role in small business lending, this expansion delivers against the Biden-Harris Administration’s unwavering commitment to providing affordable financing to the incredible entrepreneurs and new business starts revitalizing Main Streets across America. Congratulations to the four new licensees as they work alongside the mission-focused teams at the SBA to put the American dream of business ownership within reach for more entrepreneurs.”
The SBA approves SBLC licenses for selected non-depository lenders to increase responsible small business lending. An SBLC license allows the lending organization to access the SBA’s 7(a) government guarantee program when underwriting small business loans to reduce the level of risk to the lender and cost to the borrower. As a result, SBLCs are positioned to underwrite higher volumes of loans to eligible small businesses than possible without a government guaranty.
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