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Community Advantage Loan
The U.S. Small Business Administration Community Advantage Loan program is designed for new and existing businesses that need between $50,000 and $250,000 in business capital. The loan can be used to start or expand a business or buy real estate. The SBA guarantees 85 percent of loans up to $150,000 and 75 percent of loans greater than $150,000.[1]

Launched in December 2011, the Community Advantage program intends to expand access to capital in underserved communities by allowing mission-focused, community-based financial institutions – including Certified Development Companies – to offer this loan to small businesses. Greater access to credit can help spur firms to grow and hire, giving the economy a boost [2]

The SBA designates specific lenders throughout the United States to offer Community Advantage loans. The first six lenders [3] selected for the program were: CDC Small Business Finance, San Diego, CA; Cen-Tex CDC in Austin, TX; The Progress Fund in Greensburg, PA; Eastern Maine Development Corporation, Bangor, ME; Idaho-Nevada Community Development Financial Institution, Pocatello, ID; Kentucky Highlands Investment Corporation, London, KY. Thirty-four other lenders have since been approved [4].

Loan Size and Terms

 * Maximum Loan Size: $250,000 [5]
 * Terms: 7-10 years for working capital, inventory, business acquisitions, tenant improvements, and start-up expenses
 * Terms: 25 years for real estate
 * Interest Rate: Prime + 6%
 * No pre-payment penalties

Eligibility
There are specific eligibility criteria for the Community Advantage loan, which include credit history and industry experience. A designated Community Advantage lender can help a small business owner determine if they can qualify by reviewing an eligibility form [6].