Have you been told you're not quite ready for a conventional bank or Small Business Administration 7(a) loan? We might have just the financing you need!

A Community Advantage loan is a Small Business Administration 7(a) loan that is financed by a mission-based lender, like Colorado Lending Source, rather than directly through a bank. It can offer financing from $50,000 to $250,000 for a variety of business needs. 

ELIGIBLE USES

Qualified borrowers can use Community Advantage loan funds to finance:

  • Startup expenses
  • Long-term working capital
  • Purchase equipment, inventory, furniture, and fixtures
  • Business acquisition
  • Buy, build or renovate commercial real estate
  • Debt consolidation and refinance 
  • Include professional fees 

REQUIREMENTS

Are you eligible to get a loan?

  • The business is for-profit
  • The business is located in the United States
  • The business is valued at less than $15 million and the business has an after tax profit of less than $5 million a year over the average of two years
  • The business owner will occupy 51% or more of commercial real estate that is being renovated or purchased
  • The business has demonstrated need for credit

Preference will be given to applicants:

  • Located in low-to-moderate income census tracts, empowerment zones, enterprise communities, or HUBZones
  • Small businesses where more than 50% of the full-time work force is low income or resides in low-to-moderate income census tracts
  • Small businesses that are new or less than two-years old
  • Small businesses that are more than 50% owned by veterans, minorities, or women
  • Small businesses located in rural communities

RATES & FEES

Interest rates:

We price Community Advantage loans within the Small Business Administration maximum of Wall Street Journal Prime (WSJP) + 6%. The rate offered will likely be on a quarterly adjustment, but may have a different adjustment schedule or a fixed-rate as approved by our Loan Review Committee and in compliance with the Colorado Lending Source Community Advantage Loan Policy and SBA policy.

Current Wall Street Journal Prime interest rate: 4.25%

Fees:

  • Guarantee Fee of 2% on the guaranteed portion of loans $150,000 or less (through September 30, 2017, loans of $150,000 or less have an upfront guarantee fee of $0. This fee waiver may be extended beyond this date, at the SBA's discretion); Guarantee Fee of 3% on the guaranteed portion of loans $150,001 to $250,000
  • Packaging Fee paid to Colorado Lending Source based on 2% of the loan amount or $2,500, whichever is lower
  • Any direct or third-party closing costs associated with the loan
  • Appraisal/valuation report costs, if required
  • Environmental impact report costs, if required
  • All fees can be financed as part of the loan

The Community Advantage loan program was the perfect fit for my client. He appreciated how I steered him to the right resource to get his financing needs met. I'm always confident that Colorado Lending Source handles my clients with the highest level of expertise and professionalism.

Connie Meine, Citywide Banks

The Process

  1. Connect with a lender and if you can't receive financing, have them refer you to Colorado Lending Source or obtain a bank rejection letter.
  2. If eligible, you will submit a loan application and we will begin underwriting.
  3. Once the package is ready, we will submit it to the SBA for approval.
  4. Colorado Lending Source will close and fund your loan.
  5. Colorado Lending Source will service the loan for its lifetime.

Interested in learning more?

If you need help finding a banker to work with, check out the Small Business Administration website for a list of SBA lenders near you.

NEED HELP?

We're always here to help with any questions that you might have.

“Hey! I'm Laurel and always happy to answer questions about SBA 504 loans!”

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“Hey! I'm Laurel and always happy to answer questions about SBA 504 loans!”

Contact Us