New SBA program being tested for small businesses in rural areas
Are you a baby boomer considering starting or expanding a small business in a rural area? You may be eligible for a special new SBA program being test-marketed for businesses in rural areas. Called Rural Lender Advantage (RLA), the program is being tested in Colorado, Montana, South Dakota, North Dakota, Utah and Wyoming. The SBA hopes the program will help small community banks and credit unions in these rural areas be more comfortable with using the SBA guarantees for small businesses in their areas. The RLA program includes a simplified application process and greater accessibility to the SBA online.
The SBA Region 7 Newsletter gives more details on this program:
- Estimated, expedited loan processing time of only 3-5 days for routine loans
- The same level of federal guarantee as other 7 (a) loans, for smaller loans
If you are in one of the states mentioned above, and you’re considering starting a business or growing your business, you might want to check out this program. If the program meets expectations, the SBA will consider expanding it to other areas in the future.
If you do try this program, please let us know what you think. I have worked with many people starting into private practice and other small businesses, and their reaction to the SBA was mixed. Some found them easy to work with, while others didn’t. Of course, many times the problem is the bank, not SBA. I talked to someone who was told by the bank, “The SBA won’t guarantee your loan.” She went to the SBA, who gave her a letter agreeing to guarantee the loan! She took the letter back to the bank, who was dumbfounded. You never know with banks.
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POSTED IN: Business Plan, Businesses for Boomers, Finance, Starting Up
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