WASHINGTON (4/18/12)—The U.S. Small Business Administration (SBA) has opened its second round of a program intended to provide long-term loans to eligible non-profit intermediary lenders to finance loans to small businesses.
Eligible intermediaries must have at least one year of lending experience; they include state and federal credit unions, certified nonprofit Community Development Financial Institutions, private, nonprofit community development corporations, consortiums of private, nonprofit organizations or community development corporations, or agencies or nonprofit entities established by Native American tribal governments.
Under the Intermediary Lending Pilot (ILP)Program, SBA makes loans of up to $1 million to participating lenders. The lenders then use the funds to make smaller loans to newly established or growing small businesses.
SBA said in a release it anticipates that an ILP Program participant will re-lend the funds approximately 2.5 times over the 20-year term.
The program funded 20 ILP intermediaries in 2011; none of them were credit unions, however. The agency hopes to identify another 20 participants this year in the second round.
Use the resource link for more program information.