If your business is located in a low- to moderate-income community within the United States areas served by LiftFund, you may qualify for an SBA 7a Program loan.
The SBA 7a Community Advantage Loan Product was designed by the U.S. Small Business Administration (SBA) to reach underserved communities whose small business owners typically find it difficult to secure funding elsewhere. The product is a term loan and can range from $50,000 to $250,000 with an interest range from Prime + 4 to 6 %.
For SBA 7a Community Advantage loans under $150,000, the SBA has waived guaranty fees for FY 2014.
In order to be considered eligible for this loan program, businesses must meet one of the following requirements. The business must be:
- physically located in a Low-to-Moderate Income (LMI) Community
- located in Empowerment Zones and Enterprise Communities
- located in a HUB Zone
- in operation for no more than two years
- small as defined by SBA
A business with a full-time workforce that is more than 50% low-income, or whose workforce resides in LMI census tracts, may also qualify.
Additionally, veteran-owned business may also qualify for this type of loan, as long as 51% or more of the business is owned and controlled by veterans, active duty military participating in the military’s Transition Assistance Program (TAP), reservist or National Guard member or a spouse of any of these groups, a widowed spouse of a service member who died while in service, or a widowed spouse of a veteran who died of a service-connected disability.
The SBA 7a Community Advantage Loan Product does not offer revolving lines of credit.