Non-profit lender serving SBA underserved communities
PITTSBURGH — For 23 years the Regional Development Funding Corporation (RDFC) has been providing SBA 504 economic development loans for land, real estate and machinery.
Now the not-for-profit lender will be able to process SBA-backed loans to small businesses in underserved communities as an approved lender in the Community Advantage Program.
“This is good news for RDFC and the region as we will expand our expertise to assist underserved business owners to continue promoting economic growth throughout Western Pennsylvania,” said Rebecca MacBlane, executive director.
“This new lending authority allows us to administer the SBA’s 7(a) loans, which are what most entrepreneurs utilize when starting their business endeavors,” she said.
The Community Advantage Program is part of SBA’s popular 7(a) loan program, which is the agency’s primary business loan program.
The program is also the most used non-disaster financial assistance program because of its flexibility in loan structure, variety of loan proceeds uses and availability. Under the Community Advantage Program, applicants could borrow up to $250,000, of which up to 85 percent is guaranteed by the SBA. Community Advantage serves low-to-moderate income communities, empowerment zones and enterprise communities, start-up businesses, HUBZones (Historically Underutilized Business Zones), veterans, veterans’ families and the low-income workforce.
According to Carl Knoblock, SBA Western Pennsylvania district director, Community Advantage will be a win-win situation for entrepreneurs and RDFC.
“RDFC already has captured a high market share of the 504 loan market and we expect them to post incredible numbers with the Community Advantage Loan Program,” Knoblock said. “The team at RDFC, led by Ms. MacBlane, has a passion to help small business owners and now they have more tools at their disposal.”