WASHINGTON—The Small Business Administration (SBA) has published a request for information (RFI) and a notice on the establishment of a new, temporary community advantage (CA) loan product in response to the coronavirus pandemic.
The new loans – the CA recovery loans – will be made only under the CA Pilot Program and will be available to small businesses located in underserved markets, NAFCU said in its analysis.
CA lenders that are eligible to make the CA recovery loans will be notified by the SBA within five days of the published notice and will be provided instructions on how to opt-in to the program if they choose to participate.
The SBA-guaranteed loans will be available through Sept. 27, 2020, and must be fully disbursed no later than Oct. 1, 2020. Comments to the SBA are due Aug. 14.
The CA pilot program was announced in December 2010 as part of the SBA’s efforts to bolster lending to small businesses and entrepreneurs in underserved communities and began accepting applications in February 2011.