SBA accepting applications for expanded Small Business Lending Company licensees
Program that provides loan guarantees for lenders could add three more entities for the first time in more than 40 years.
For the first time in more than 40 years, the U.S. Small Business Administration (SBA) has opened a window for new applications for a program that allows lenders to utilize government guarantees to support small businesses that might not otherwise qualify due to their risk profile.
Appropriately named the Small Business Lending Company (SBLC) program, the designation provides a license that allows lending organizations to utilize government guarantees when underwriting small business loans to reduce the level of risk to the lender and cost to the borrower. As a result, SBLCs are positioned to write higher volumes of loans to small businesses than possible without a government guarantee.
According to this news release from SBA, there are currently 14 SBLC licenses in the marketplace today. An SBA rule finalized last month lifted the moratorium on additional licenses. SBA will issue up to three new licenses to qualified lenders based on a review of applications received during this application window.
New applicants may apply through July 31.