The SBA is now allowing four nondepository financial institutions around the country to offer federally backed loans.
The Small Business Administration is extending pathways for small businesses to secure federally backed loans.
Just in time for the New Year, the SBA has issued four new licenses to small business lending companies that allow more nondepository financial institutions to provide federally backed loans, American Banker reports. A10 Capital in Boise, Idaho; Cooperative Business Services in Cincinnati; Lafayette Square in Miami; and Stonehenge Capital in Baton Rouge, Louisiana, can now participate in the SBA’s primary lending program.
This initiative, announced on Monday, is being promoted as part of a larger effort to enhance access to capital for underserved groups and communities.
“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,” SBA Administrator Isabel Casillas Guzman said in a statement.