The Small Business Administration recently announced the addition of four lending institutions to the small business lending network.
SBA Administrator Isabel Casillas Guzman said the SBA had granted Cooperative Business Services, A10 Capital, Lafayette Square, and Stonehenge Capital licenses to operate as a Small Business Lending Company. The announcement marks the SBLC program’s second expansion in the past 40 years, both under President Joe Biden. Guzman said the addition will broaden the availability of 7(a) loans to low-income and other underserved communities in Ohio; Idaho; Washington, D.C. and Louisiana.
“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,” Guzman said. “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 said an SBLC license provides a lending organization to access the SBA’s 7(a) government guarantee program when underwriting small business loans to reduce the lending organization’s risk. The program also lowers the cost of borrowing to the small business. As a result, SBLC lending organizations are put in a position to underwrite higher volumes of loans to eligible small businesses, the SBA said.
“By partnering with local credit unions, we can expand access to vital capital for underserved markets, empowering entrepreneurs to start, operate, and grow businesses that drive economic growth and strengthen the fabric of our communities,” Cooperative Business Services, LLC., president and CEO Keith Reed said. “This achievement underscores our dedication to fostering collaboration and supporting the credit unions that make our mission possible.”