On December 27, 2024, the U.S. Small Business Administration (SBA) announced a significant expansion of its lending network by licensing four new nondepository financial institutions: A10 Capital from Boise, Idaho; Cooperative Business Services from Cincinnati; Lafayette Square from Miami; and Stonehenge Capital from Baton Rouge, Louisiana [426d772f]. This initiative aims to enhance access to capital for small businesses, particularly in underserved communities, and marks the second time in over 40 years that new lenders have been welcomed into the SBA's lending program [426d772f].
The new lenders will utilize the SBA's 7(a) government guarantee program, which reduces risk for lenders and costs for borrowers, thereby increasing loan availability for small businesses as the nation approaches 2025 [426d772f]. This expansion follows the SBA's decision in April 2023 to lift the cap on nondepository 7(a) lenders, which previously limited participation to just 14 lenders [426d772f].
In conjunction with these developments, Texas Governor Greg Abbott recently unveiled the Texas Small Business Credit Initiative (TSBCI), aimed at expanding access to funding for small businesses in the state [32c12d32]. This initiative includes two programs: the Capital Access Program and the Loan Guarantee Program, designed for Texas businesses with up to 499 employees. The TSBCI is set to promote job growth and economic development while prioritizing traditionally underserved businesses and those affected by the COVID-19 pandemic [32c12d32].
Additionally, the American Sustainable Business Council (ASBC) has launched the Green Lender Initiative to increase funding for small businesses' clean energy goals [654982f7]. This initiative provides resources and support to lenders, helping them offer affordable financing options for clean energy investments. The SBA is also expanding its Community Advantage program to provide additional flexibility for climate-focused projects, aligning private capital with investments that support America's clean energy transition [1c529876].
These initiatives collectively reflect a broader commitment by the Biden-Harris Administration to enhance economic growth and financial inclusion for small businesses, particularly in underserved communities [6601f4cc].