Four New Small Business Lending Companies Authorized to Support American Entrepreneurs in Underserved Communities

WASHINGTON, December 23, 2024 (GLOBE NEWSWIRE) — Today, Administrator Isabel Casillas Guzmánhead of U.S. Small Business Administration (SBA) and the voice of America’s more than 34 million small businesses in President Biden’s Cabinet, announced that the SBA has granted Small Business Lending Company (SBLC) licenses to four lending institutions committed to expanding access to capital to underserved markets. The award of four new SBLCs – Cooperative Business Services, A10 Capital, Lafayette Square and Stonehenge Capital – marks the second expansion of the SBLC program under the Biden-Harris administration and the second completed in 40 years. This expands the availability of 7(a) loans in low-income and other underserved communities nationwide from their locations in Ohio, Idaho, Washington, DC, and Louisiana, respectively.

“For the second time in more than 40 years, the Biden-Harris SBA welcomes new lenders with a shared mission to close capital gaps in underserved communities – the same communities that are starting businesses today at the highest rates bred from America”, » said Administrator Guzman. “As private markets play an increasingly important role in small business lending, this expansion flies in the face of the Biden-Harris Administration’s steadfast commitment to providing affordable financing to incredible entrepreneurs and New businesses are beginning to revitalize main streets across America. Congratulations to the four new licensees as they work alongside the SBA’s mission-driven teams to put the American dream of business ownership within reach of more entrepreneurs.

The SBA approves SBLC licenses for certain nondepository lenders to increase responsible lending to small businesses. An SBLC license allows the lending organization to access the SBA’s 7(a) government guarantee program when underwriting small business loans to reduce the level of risk to the lender and the cost to the borrower . As a result, SBLCs are able to guarantee higher loan volumes to eligible small businesses than would be possible without the government guarantee.

“Cooperative Business Services, LLC, is honored to receive an SBA SBLC license, a critical milestone that reinforces our commitment to serving communities through our innovative consortium of credit unions. By partnering with local credit unions, we can expand access to vital capital for underserved markets. , enabling entrepreneurs to start, operate and grow businesses that drive economic growth and strengthen the social fabric of our communities,” said Cooperative Business Services, LLC., President and CEO Keith Reed. “This achievement underscores our commitment to fostering collaboration and supporting the credit unions that make our mission possible.

“A10 Capital is truly honored to receive a new SBLC license from the SBA. We look forward to applying our decades of knowledge, expertise and experience to provide lending solutions to the nation’s small businesses that are underprivileged. able to access constructive forms of credit elsewhere”, said Anuj Gupta, CEO of A10 Capital. “Small businesses are the backbone of the U.S. economy and we look forward to quickly launching operations and beginning providing capital to small businesses across a broad range of sectors, industry groups and geographies.”

“Lafayette Square USA, Inc. appreciates receiving this new SBLC license which will allow our private lending platform to expand into 7(a) lending,” said Lafayette Square USA, Inc. President and CEO Damien Dwin. “As a business development company with two SBIC licenses, we are committed to partnering with SBA in pursuit of our 2030 goal of supporting 100,000 working class jobs, investing 50% of our capital in working class places , including rural areas, and to see 50% adoption of management assistance across our portfolio. Our business model is built on combining capital, services and technology for America’s small businesses, which makes this SBLC license incredibly valuable in driving our performance. We look forward to supporting entrepreneurs. in working-class communities across the country.

“For more than 25 years, Stonehenge Capital has supported small businesses in underserved communities across the country,” said Stonehenge Capital, Senior Managing Director of L’Quentus Thomas. “Through our purpose for impact, we have helped entrepreneurs and small business owners grow their businesses by accessing capital that can be difficult to obtain in many areas. The SBLC license will give us a new tool to provide SBA 7(a) capital to small businesses. with a particular focus on low-to-moderate income and rural areas in the United States. We are honored that the SBA has chosen Stonehenge, and we look forward to playing a role in growing strong businesses and new jobs in underserved communities.

With this second expansion of four new SBLC licenses, SBA has now expanded its network from 14 SBLCs to 20 SBLCs, helping to attract capital to new markets.

• CBS (Cooperative Business Services, LLC) in Cincinnati, Ohio, is a credit union servicing organization and has facilitated the financing of more than $400 million to women-owned businesses and $123 million to veteran-owned businesses over its 21 years of activity. It plans to build on this work to close credit gaps in low- and moderate-income communities and focus on smaller loan amounts, increased loan volume and targeted outreach within its growing network credit unions.
• A10 Capital (A10 SBA Lending, LLC) in Boise, Idaho, has been a leader in commercial real estate since 2007 and has partnered with the SBA to provide approximately 20,000 Paycheck Protection Program loans to support small businesses during the pandemic. As an SBLC, A10 plans to target underbanked industries and underserved communities to reach women, veterans, rural markets and minority homeowners of all ethnicities in the service, retail and retail sectors. , wholesale and manufacturing, including those seeking loans for domestic renewable energy, energy efficiency. , sustainability and pollution prevention. A10 intends to ensure that at least 50% of all funded loans come from these underserved markets.
• Place Lafayette (Lafayette Square SBLC, LLC) with offices nationwide, is a minority-owned, impact-focused investment platform. Founded in 2020, Lafayette Square promotes public welfare and economic growth across the United States by lending primarily to small businesses located in underserved communities and that largely employ low-to-moderate income individuals. SBLC plans to increase its focus on community solar, small-scale utility solar, engineering, recycling and next-generation projects such as energy storage, as well as various initiatives supporting communities underserved in general.
• Stonehenge Capital (Stonehenge SBLC, LLC) in Baton Rouge, Louisiana, has been a leader in community development financing since its founding in 1999 and has invested in small businesses in 38 states since its founding, including 30 states in the last five years. It plans to invest at least 65% of its total loan volume in small businesses located in low-income communities nationwide, as defined under the federal New Markets Tax Credit program , and 25-40% of its total loan volume in green lending opportunities nationwide. . Stonehenge’s track record includes more than $1.5 billion invested in these underserved markets and communities and nearly 200 investments under $5 million.

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About the U.S. Small Business Administration

The U.S. Small Business Administration helps fuel the American dream of business ownership. As the only resource and go-to voice for small businesses backed by the strength of the federal government, the SBA gives entrepreneurs and small business owners the resources and support they need to start, grow or expand their businesses, or recover from a crisis. declared a disaster. It provides services through an extensive network of SBA field offices and partnerships with public and private organizations. To learn more, visit www.sba.gov.

CONTACT: SBA Headquarters Press Team

U.S. Small Business Administration

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