SBA Announces New Initiatives Aimed at
Increasing Lending in Underserved Communities
Mills names Hughes to chair new council to advise agency on
expanding opportunities for entrepreneurs in underserved communities
WASHINGTON – With small business owners and entrepreneurs in traditionally underserved communities continuing to face challenges accessing capital, the U.S. Small Business Administration today announced two new initiatives aimed at increasing SBA-backed loans to small businesses in these markets.
SBA Administrator Karen Mills also today named Catherine L. Hughes, chairperson and founder of Radio One, Inc., and a former SBA borrower, to chair the agency’s new Advisory Council on Underserved Communities.
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 and Community Advantage – are 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.
In conjunction with the implementation of these two new Advantage loan initiatives by March 15, the agency will end its existing Community Express pilot loan program on April 30.
“Many entrepreneurs and small business owners across the country have enormous potential to drive economic growth and create good-paying jobs in their local communities, but too often they face barriers in fulfilling that potential,” said Hughes, who will chair the council. “I’m excited to be a part of this effort to strengthen the link between these entrepreneurs and the SBA’s wide variety of resources. SBA assistance played a critical role in my success, and I’m eager to do all I can to help make sure others have access to these same opportunities.”
We continue to salute Ms. Cathy Hughes on her forward-thinking and progressions in entertainment and business all across the world’s underserved communities.
Read more on the special announcement here – Cathy Hughes Accepts New Chair
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