Who Is Eligible? Small Loan Advantage is a loan guaranty program structured to encourage existing SBA lenders to make lower-dollar loans, which often benefit businesses in underserved markets.
What Activities Are Eligible? This initiative allows lenders to get a pre-qualification indication from SBA that the applicant business has sufficient creditworthiness to warrant giving the applicant full consideration for financing. The small business applicant applies for financial assistance from an SBA approved lender. The lender decides if the request will require an SBA guaranty.
How much? SBA offers loan guarantee of 85% for loans up to $150,000, and 75% for those greater than $150,000. Maximum loan size is $350,000.