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The U.S. Small Business Administration (SBA) is introducing a new 7(a) loan initiative designed to accommodate the unique loan processing needs of small community/rural-based lenders, many of which do not make SBA 7(a) loans or make very few SBA loans.
Small/Rural Lender Advantage (S/RLA) is part of a broader SBA initiative to promote the economic development of local communities, particularly those facing the challenges of population loss, economic dislocation, high unemployment, etc. This initiative is part of the Agency’s 7(a) loan guaranty program and is designed to encourage small community/rural lenders to partner with SBA by simplifying and streamlining the Agency’s loan application process and procedures, particularly for smaller SBA loans.
SBA introduced and tested this initiative for several months in its Region VIII district offices (CO, MT, ND, SD, UT, and WY). After additional streamlining and enhancement, the Agency is expanding Small/Rural Lender Advantage nationally under the following schedule, which is tentative and could change slightly depending the timing of additional staffing at SBA’s loan processing center. (Local SBA districts will have more current scheduling information.)
| May 15, 2008 |
(Complete) SBA’s Region VII |
(KS, NE, MO, IA) |
| June 1, 2008 |
(Complete) SBA’s Region VI |
(TX, AR, LA, OK, NM) |
| July 1, 2008 |
SBA’s Region V |
(IL, IN, OH, MI, WI, MN) |
| Aug 1, 2008 |
SBA’s Regions I & IV |
(New Eng, Southeast) |
| Sept 1, 2008 |
SBA’s Regions II & III |
(Mid-Atlantic) |
| Sept 15, 2008 |
SBA’s Regions IX & X |
(Mid-Atlantic) |
Key features of the Initiative
Resources:
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