Rural lending initiative expands to Missouri

According to an SBA news release, the Small/Rural Lender Advantage initiative is part of the agency’s 7(a) loan program. Specifically, the initiative streamlines SBA’s application and approval processes to encourage smaller or rural lenders that make 20 or fewer SBA loans a year to offer them to borrowers.

Among the key features of the Small/Rural Lender Advantage:

• a shorter, simplified application for loans of $350,000 or less;

• an expedited loan-processing time of three to five days;

• a simplified loan eligibility questionnaire to help lenders understand SBA’s eligibility criteria; and

• only limited, key financial documentation is required.

SBA expects to offer the initiative nationwide by the end of the fiscal year.

“Companies throughout America, especially rural America, rely on community banks to finance their growth, and rural small businesses often need strong relationship support, which small community banks are qualified to provide,” said SBA Deputy Administrator Jovita Carranza, in the release.

“We are committed to expanding access to private capital for rural entrepreneurs by becoming a better partner for America’s community banks.”

According to the SBA, small businesses account for two-thirds of all rural jobs and comprise more than 90 percent of all rural establishments, but the number of banks nationwide taking advantage of SBA loan programs has declined by almost 400 in the past two years. SBA officials are hoping new initiatives such as the Small/Rural Lender Advantage will bring some banks back into the fold. [[In-content Ad]]