SBA Seeks More Lenders for Pilot Loan Program
The SBA has opened a second application period for nonprofit intermediary lenders to apply for a pilot program that provides small business loans up to $200,000.
Under the Intermediary Lending Pilot Program, the SBA said it makes loans of up to $1 million to participating lenders, which use the funds to make smaller loans to startup, newly established and growing small businesses.
The agency said small businesses, especially those in underserved markets, can be eligible for loans of up to $200,000.
The program funded 20 ILP intermediaries in 2011, and hopes to identify another 20 this year in the second round, according to the SBA. If Congress appropriates additional funds for the ILP program, the agency said it will select another 20 ILP intermediaries in fiscal year 2013, for a maximum of 60.
Completed applications are due by May 25.
The SBA said eligible intermediaries must have at least one year of lending experience, and include private, nonprofit community development corporations, consortiums of private, nonprofit organizations or community development corporations, or agencies or nonprofit entities established by Native American tribal governments.
Intermediaries currently participating in the microloan program are not eligible to become ILP lenders; however, affiliates of microloan intermediaries may apply if they can demonstrate at least one year of lending experience, according to the SBA.