Pilot lending program for small businesses launched
Published on 08/26/2011
Three non-profit community organizations in California have received funding from the U.S. Small Business Administration (SBA) to begin lending up to $200,000 to qualifying small businesses.
Authorized under the Small Business Jobs Act of 2010, the new Intermediary Lending Pilot Program will provide direct loans up to $1 million to 20 community organizations or intermediaries in fiscal year 2011, which in turn will use those funds to help finance small businesses.
"The Intermediary Lending Program is an important new tool to support businesses in underserved markets," said SBA Deputy Administrator Marie Johns. "Partnering with community lenders will increase points of access to capital for start-ups and businesses that have been disproportionately affected by the recession."
The California non-profits taking part in the program are The Fresno County Economic Opportunities Commission, Pacific Community Ventures in San Francisco, and TELACU Community Capital in Los Angeles.
The SBA will double the size of the program in fiscal year 2012. The program will need Congressional authorization to continue operating beyond 2012.
