Applications are now being accepted through the Small Business Administration for intermediary lenders to acquire long-term loans to help finance small businesses.
Under the Small Business Jobs Act of 2010, the SBA launched the Intermediary Lending Pilot Program, which provides the loans to eligible nonprofit intermediary lenders that re-loan the money to new and growing small businesses.
The SBA recently announced its second round of applications for loans of up to $1 million is open until May 25. Lenders who are accepted will be able to loan small businesses up to $200,000 for startup and growth.
“Providing small businesses with the financial resources they need to start, grow and succeed is at the core of SBA’s mission,” says Karen Mills, administrator at the U.S. SBA.
Last year, 20 applicants received funding, and the SBA hopes to identify another 20 this year. Based on decisions in Congress, a final 20 applicants may be selected in 2013 as well.
“The first round of the Intermediary Lending Pilot Program showed that we are on the right track, and now we are expanding it,” Mills says. “These nonprofit lending institutions are helping small businesses create jobs and strengthen our economy.”