Loan Program Aims at Distressed Areas

Small businesses in minority neighborhoods may want to check out the latest lending program offered by the Small Business Administration. The agency has teamed up with the National Community Reinvestment Coalition and major SBA lenders to create a pilot loan program called Community Express.

Essentially, it combines features of two existing programs into a new public-private partnership to assist business owners in distressed urban and rural areas. Qualified small-business owners in Los Angeles and 29 other target communities can get loans of up to $250,000, along with free technical assistance, from a NCRC affiliate. The banks get streamlined paperwork, fast processing and SBA guarantees for up to 75% of the loan amount.

The SBA has tapped Bank of America as the lender for the Los Angeles pilot, which is set to launch in May. For more information, contact John Tumpak at the Los Angeles office of the SBA at (818) 552-3203.