CDFI Finances Small Businesses to Create Jobs, Strengthen Communities
JACKSON, MS – Hope Enterprise Corporation (HOPE) has been selected by the U.S. Small Business Administration (SBA) as its first lender in the Community Advantage Loan program in Mississippi.
“HOPE has fostered jobs and economic development in underserved communities by ensuring that thousands of small businesses have access to the tools needed to succeed,” said HOPE CEO Bill Bynum. “For small, rural and minority entrepreneurs, financing can be the most elusive resource. With the Community Advantage program, we can help even more companies stabilize, grow and contribute to rebuilding the economy.”
The Community Advantage pilot program, announced in December 2010, is designed to expand access to lower dollar loans and lending in traditionally underserved communities. SBA and the U.S. Department of Commerce studies have shown the importance of lower dollar loans to small business formation and growth in underserved communities.
“We’re excited about HOPE’s participation in the program and look forward to additional eligible lenders to come onboard as well, in order to provide even more much needed financing to small businesses in underserved communities in Mississippi to help in their development and growth,” said Janita R. Stewart, District Director of the SBA in Mississippi. “Underserved communities were hit disproportionately hard by the recession and this program is designed to help toward improving those areas.”
Community Advantage offers a streamlined application process for SBA-guaranteed 7(a) loans up to $250,000. Advantage loans also come with the regular 7(a) government guarantee, 85 percent for loans up to $150,000 and 75 percent for those greater than $150,000.
It is specifically aimed at expanding points of access to capital for small business owners by opening SBA’s 7(a) loan program to community-based, mission-focused financial institutions, including Community Development Financial Institutions, SBA’s Certified Development Companies and SBA’s nonprofit microlending intermediaries. Community Advantage leverages the experience these institutions already have in lending in economically challenged markets, along with their management and technical assistance expertise to help make their borrowers successful.
“While other lenders have withdrawn from the market, HOPE has seen growing loan demand from small businesses,” said Bynum. “Our success at providing financing during these difficult economic times demonstrates that organizations like HOPE are more important than ever.”
Businesses interested in obtaining financing can contact a HOPE lender at 1-877-843-3358. More information about the Community Advantage program is available at http://www.sba.gov/advantage.
HOPE (Hope Enterprise Corporation/Hope Credit Union) is a is a regional financial institution, community development intermediary and policy center that provides affordable financial services; leverages private, public and philanthropic resources; and engages in policy analysis in order to fulfill its mission of strengthening communities, building assets, and improving lives in economically distressed parts of the Mid South. Since 1994, HOPE’s efforts have generated over $1.6 billion in financing and benefited more than 90,000 individuals in the Delta, Katrina-affected areas and other distressed communities throughout Arkansas, Louisiana, Mississippi, and Tennessee.