The Community Express loan program was initiated in May of 1999 by the Small Business Administration. It was developed together with the National Community Reinvestment Coalition (NCRC) and their member organizations. This is a pilot program that is offered to selected lenders in pre-designated geographic areas. It has, for the most part, served women, minorities, veterans and business owners in low to moderate income areas nationwide.
The program includes management and technical assistance, which is designed to help increase the loan applicant’s ability to be a successful business. Borrowers must receive “pre” and “post” loan closing assistance from local non-profit and/or from participating lenders in order to participate in this program. Assistance is coordinated and sometimes even paid for by Community Express lenders.
The SBA does not normally give start up money to small businesses. However, under this loan program, some companies may be eligible to receive start-up funding. For loans up to $25,000, there is no collateral needed, which is certainly a plus for newly formed businesses which most likely do not have collateral available to them. For loans from $25,000 to $150,000, lenders may use their existing collateral policy. Loans greater than $150,000 must follow the general collateral policy guidelines that are set by the SBA.
The maximum loan amount available under this program is $250,000 with the standard SBA guarantee percent followed. Community Express loans are subject to the same maximum interest rate as any other type of SBA loan available to small businesses.
This program is worth checking out if you are a small business.
