South Dakota District Office 2329 N Career Ave

South Dakota District Office 2329 N. Career Ave. Sioux Falls, South Dakota 57107 (605) 330 -4243 Ext. 39 paul. gunderson@sba. gov www. sba. gov/for-lenders

Access to Capital • Grants NOT available from SBA • SBA offers loan guarantees to lenders – Partial refund for failed loan – Lender obtains guarantee • Lenders handle all loan transactions – – – Application Approval Disbursement Servicing Collection Visit us at www. sba. gov 2

Access to Capital So Why Go With an SBA Guarantee? ? Visit us at www. sba. gov 3

Access to Capital • Not everyone needs an SBA Guarantee • SBA Guaranteed Loan Program provides an alternative • If risk is too high - lender comes to SBA – SBA Guarantee reduces lender risk • Start-ups • Insufficient collateral • Non-standard repayment terms Visit us at www. sba. gov 4

7(a) Program • Use of Proceeds – Working capital – Inventory – Lines of credit – Expansion / renovation – Leasehold improvements – Land or buildings – Furniture / fixtures / equipment – Refinance debt for compelling reasons Visit us at www. sba. gov 5

Community Advantage Pilot Program South Dakota District Office 2/9/11 -V 1. 0

Community Advantage New 7(a) Pilot Program (3 -year duration) To meet the capital access needs of small businesses in underserved markets To increase the points of access for underserved markets To provide mission-oriented lenders access to 7(a) loan guarantees for loans of $250, 000 or less 2/9/11 -V 1. 0

Community Advantage Target: Primarily non-profit financial intermediaries focused on economic development in underserved markets Underserved markets include: Low-to-Moderate Income (LMI) communities Empowerment Zones Enterprise Communities HUBZones Start-up businesses (in business no more than two years) Veteran-owned businesses (including Patriot Express eligible) More than 50% of full time workforce is low-income or resides in LMI census tracts. 2/9/11 -V 1. 0

Community Advantage Eligible Lenders • SBA-authorized Certified Development Companies (CDC) • SBA-authorized Microloan Intermediaries • Non-Federally Regulated Community Development Financial Institutions To participate in the program eligible applicants will be evaluated on their organization’s expertise, capacity and infrastructure 2/9/11 -V 1. 0

Community Advantage Loans Basic Loan Terms and Conditions are the same as standard 7(a) loan (see SOP 50 10 5, Subpart B, Chapter 2 as amended), with the following exceptions: • • $250, 000 maximum loan size Prime + 4% maximum interest rate Revolving lines are not allowed Management and Technical Assistant will be encouraged when appropriate – Information will be collected on each loan at application 2/9/11 -V 1. 0

Visit us at www. sba. gov 11