SBA's New Loan Program: Small Loan Advantage (SLA)
With small business owners and entrepreneurs in traditionally underserved communities continuing to face challenges accessing capital, the U.S. Small Business Administration is rolling out a new initiative aimed at increasing SBA-backed loans to small businesses in these markets.
SBA and U.S. Department of Commerce studies have shown the importance of lower-dollar loans to small business formation and growth in underserved communities. With that in mind, the two new loan initiatives – Small Loan Advantage – is aimed at increasing the number of lower-dollar SBA 7(a) loans going to small businesses and entrepreneurs in underserved communities. The agency’s most popular loan product, 7(a) government-guaranteed loans can be used for variety of general business purposes, including working capital and purchases of equipment and real estate.
Built on what the agency refers to as its “Advantage” platform, both Small Loan Advantage will offer a streamlined application process for SBA-guaranteed 7(a) loans up to $350,000. These loans will come with the regular 7(a) government guarantee, 85 percent for loans up to $150,000 and 75 percent for those greater than $150,000. Small Loan Advantage will be available to all SBA lenders.
The SBA previously offered the Small Loan Advantage (SLA) program to new businesses seeking up to $250,000 but the relaunch, called SLA 2.0, could approve up to $350,000. The More Doors, More Dollars
initiative, as part of the Community Advantage program, SBA loans are targeting startups in financially troubled areas to encourage industry rejuvenation.
SBA and AARP entered into a strategic alliance in May 2012 to provide Americans over the age of the 50 with the real-world actionable information they need to start and grow small businesses. Through this alliance, SBA and AARP have committed to jointly counsel, train or mentor over 100,000 new and existing “Encore Entrepreneurs” over the next year, and give them the tools they need to succeed and create jobs. National Encore Entrepreneur Mentor Day will allow both AARP and SBA to help reach to their goal of training and counseling 100,000 Encore Entrepreneurs over the next year.
Currently there are over 76 million Baby Boomers in the country and many are interested in and poised to be entrepreneurs. New research found that one in four Americans between the ages 44 and 70 are interested in starting their own a business or nonprofit venture in the next five to 10 years. Nearly half of these aspiring entrepreneurs reported a desire to be “Encore Entrepreneurs”, a business with a positive social impact.
For many Baby Boomers, entrepreneurship training is the toolkit that empowers them to use their experience, knowledge, and skills to become job creators. Entrepreneurship training focuses on helping experienced professionals leverage their career knowledge for a new business. National Encore Entrepreneur Mentor Day is an opportunity for the SBA and its partners to leverage AARP’s network to introduce existing and future encore entrepreneurs to existing resources. It is also an opportunity for AARP to expose interested members to SBA’s resources that are available to help them in starting and growing a business.
Colorado District Office Event:
Our office is going to host a mentor Q&A on Tuesday, October 2 from 10:00am to 11:30am at the Denver Metro SBDC 1445 Market Street Denver, CO 80202, 5th Floor. A well-known older business mentor and franchise owner of Assisted Transition, Gary Rasmussen will in share his stories and lessons learned with aspiring 50+ small business owners. There will also be a networking opportunity for participants after the event to answer any questions about small business assistance through our resource partner network.
SBA has three resource partners we work closely with to help small businesses start, grow, and succeed. Our resources partners provide counseling and training to potential, start-up, or existing small businesses throughout the state. See below to learn more about our partners and discover upcoming events located near you!
Mi Casa Women's Business Center:
A nonprofit organization that focus on help low-income families create economic success. Mi Casa promotes educational programs in Career, Business, and Youth and Family Development. While they primarily target Latinos they welcome everyone.
- Career Program: 126 individuals successfully completed the bilingual entrepreneurial training courses in Colorado.
- Business Program: 188 clients completed Mi Casa’s career training programs, 55 launched and 122 new jobs were created.
- Youth and Family Development: 544 children were served in out-of-school time enrichment programs.
to check out Mi Casa's upcoming events!
Small Business Development Centers (SBDC):
An organization that provides free counseling, training, information and resources from federal, state, and local governments for the small business community. They have 14 locations throughout the state, click here for locations.
In 2011 the Colorado SBDC’s….
- Counseled over 5543 clients
- Helped start 386 businesses
- Increased Sales by $47,271,140
Click here to see SBDC's upcoming events throughout the state!
Service Corps of Retired Executives (SCORE)
SCORE is a nonprofit organization that provides free counseling and workshops for entrepreneurs that need assistance to start and grow their business.
- Colorado SCORE mentored over 4000 clients in the past year
- Colorado SCORE clients started 715 new businesses and 856 new jobs in 2011
- At least 91% of SCORE’s 2010 clients remained in business in 2011
Click here to see the schedule for upcoming seminars!