Four New Small Business Lending Companies Authorized to Support America’s Entrepreneurs in Underserved Communities
WASHINGTON, Dec. 23, 2024 (GLOBE NEWSWIRE) — Today, Administrator Isabel Casillas Guzman, head of the U.S. Small Business Administration (SBA) and the voice for America’s more than 34 million small businesses in President Biden’s Cabinet, announced that the SBA has granted Small Business Lending Company (SBLC) licenses to four lending institutions committed to expanding access to capital to underserved markets. The awarding of four new SBLCs—Cooperative Business Services, A10 Capital, Lafayette Square, and Stonehenge Capital—marks the SBLC program’s second expansion during the Biden-Harris Administration and the second made in 40 years. This broadens the availability of 7(a) loans in low-income and other underserved communities nationwide from their locations in Ohio, Idaho, Washington, D.C., and Louisiana, respectively.
“For the second time in over 40 years, the Biden-Harris SBA welcomes new lenders with a shared mission of filling capital gaps in underserved communities – the very same communities who are starting businesses at the highest rates in America today,” said Administrator Guzman. “With private markets playing an increasingly important role in small business lending, this expansion delivers against the Biden-Harris Administration’s unwavering commitment to providing affordable financing to the incredible entrepreneurs and new business starts revitalizing Main Streets across America. Congratulations to the four new licensees as they work alongside the mission-focused teams at the SBA to put the American dream of business ownership within reach for more entrepreneurs.”
The SBA approves SBLC licenses for selected non-depository lenders to increase responsible small business lending. An SBLC license allows the lending organization to access the SBA’s 7(a) government guarantee program when underwriting small business loans to reduce the level of risk to the lender and cost to the borrower. As a result, SBLCs are positioned to underwrite higher volumes of loans to eligible small businesses than possible without a government guaranty.
“Cooperative Business Services, LLC, is honored to receive an SBA SBLC license, a pivotal milestone that reinforces our commitment to serving communities through our innovative credit union consortium. By partnering with local credit unions, we can expand access to vital capital for underserved markets, empowering entrepreneurs to start, operate, and grow businesses that drive economic growth and strengthen the fabric of our communities,” said Cooperative Business Services, LLC., President and CEO Keith Reed. “This achievement underscores our dedication to fostering collaboration and supporting the credit unions that make our mission possible.”
“A10 Capital is truly honored to receive a new SBLC license from the SBA. We look forward to applying our decades of knowledge, expertise and experience to provide lending solutions to small businesses nationwide that are unable to access constructive forms of credit elsewhere,” said A10 Capital CEO Anuj Gupta. “Small businesses are the backbone of the U.S. economy and we are eager to quickly launch operations and commence providing capital to small businesses across a wide range of sectors, industry groups and geographies.”
“Lafayette Square USA, Inc., appreciates receiving this new SBLC license that will allow our private credit platform to expand into 7(a) lending,” said Lafayette Square USA, Inc., President and CEO Damien Dwin. “As a business development company with two SBIC licenses, we are committed to partnering with SBA in pursuit of our Goal 2030 to support 100,000 working-class jobs, invest 50% of our capital in working-class places including rural areas, and see 50% adoption of managerial assistance across our portfolio. Our business model relies upon marrying capital, services, and technology for American small businesses, making this SBLC license incredibly valuable in driving our performance. We look forward to supporting entrepreneurs in working-class places across the country.”
“For over 25 years, Stonehenge Capital has supported small businesses in underserved communities across the country,” said Stonehenge Capital Senior Managing Director of L’Quentus Thomas. “With our impact focus, we have helped entrepreneurs and small business owners grow their businesses by accessing capital that can be difficult to obtain in many areas. The SBLC license will give us a new tool to provide SBA 7(a) capital to small businesses with a particular focus on low-moderate income and rural areas in the U.S. We are honored that the SBA chose Stonehenge, and we look forward to playing a part in growing strong businesses and new jobs in underserved communities.”
With this second expansion of four new SBLC licenses, SBA now has expanded the network from 14 SBLCs to 20 SBLCs helping to bring capital to new markets.
- CBS (Cooperative Business Services, LLC) in Cincinnati, Ohio, is a Credit Union Service Organization and has facilitated over $400 million in funding to women-owned businesses and $123 million to veteran-owned companies in its 21 years of operation. It plans to build upon this work to address credit gaps in low-moderate income communities and shift in focus to smaller loan amounts, increased loan volume, and targeted outreach within its growing network of credit unions.
- A10 Capital (A10 SBA Lending, LLC) in Boise, Idaho, has been a commercial real estate leader since 2007 and partnered with SBA to provide approximately 20,000 Paycheck Protection Program loans to support small businesses through the pandemic. As an SBLC, A10 plans to target underbanked industries and underserved communities to reach women, veterans, rural markets, and minority-owners of all ethnicities in the service, retail, wholesale and manufacturing industries, including those seeking loans for domestic renewable energy, efficiency, sustainability, and pollution prevention. A10 intends to have at least 50% of all loans funded come from these underserved markets.
- Lafayette Square (Lafayette Square SBLC, LLC) with offices nationwide, is an impact-driven, minority-owned investment platform. Founded in 2020, Lafayette Square promotes public welfare and economic growth across the United States by principally lending to small businesses in underserved communities and that substantially employ low-to-moderate-income individuals. The SBLC plans to increase focus on community solar, small-scale utility solar, engineering, recycling, and next-generation projects such as energy storage, as well as various initiatives supporting underserved communities generally.
- Stonehenge Capital (Stonehenge SBLC, LLC) in Baton Rouge, La., has been a leader in community development finance since its founding in 1999 and invested in small businesses across 38 states since its founding, including 30 states in the past five years. It plans to invest a minimum of 65% of its total loan volume in small businesses in low-income communities nationwide, as defined under the federal New Markets Tax Credit Program, and 25-40% of its total loan volume into green lending opportunities nationwide. Stonehenge’s track record includes over $1.5 billion invested in these underserved markets and communities and almost 200 investments of less than $5 million.
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About the U.S. Small Business Administration
The U.S. Small Business Administration helps power the American dream of business ownership. As the only go-to resource and voice for small businesses backed by the strength of the federal government, the SBA empowers entrepreneurs and small business owners with the resources and support they need to start, grow, or expand their businesses, or recover from a declared disaster. It delivers services through an extensive network of SBA field offices and partnerships with public and private organizations. To learn more, visit www.sba.gov.
CONTACT: SBA HQ Press Team U.S. Small Business Administration press_office@sba.gov
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