Community Advantage Pilot Program (ended)
Short answer
The Community Advantage Pilot Program ended October 31, 2023. No new loans can be made under it. Former pilot lenders could convert to Community Advantage Small Business Lending Companies, which make regular 7(a) loans (88 FR 69003, Oct. 5, 2023).
Key facts
| Fact | Value |
|---|---|
| Status | ended October 31, 2023 |
| New loans | None. The pilot has ended. |
| Former lenders | Could convert to CA SBLC licenses and make regular 7(a) loans |
| Loans made under the pilot | 8,248, totaling over $1.1 billion |
On this page
Status: this program has ended
The Community Advantage Pilot Program ended October 31, 2023. SBA called its Federal Register notice the third and final public notice of the pilot's termination (88 FR 69003, Oct. 5, 2023). You cannot apply for a Community Advantage Pilot loan today.
What the pilot was
SBA introduced the pilot on February 18, 2011, to increase 7(a) lending in underserved markets. It worked through mission-oriented lenders, primarily nonprofit financial intermediaries (88 FR 69003, at 69003-04).
Over its life, 121 pilot lenders made 8,248 loans totaling over $1.1 billion (at 69004). The maximum loan was $250,000 until May 2023 (at 69007).
What replaced it
A 2023 SBA rule created a new license (88 FR 69003, citing 88 FR 21890). It is the Community Advantage Small Business Lending Company, or CA SBLC. Pilot lenders could convert to that license, which carries permanent 7(a) lending authority.
A CA SBLC makes regular 7(a) loans, not a separate pilot product (88 FR 69003). SOP 50 10 8.1 limits a CA SBLC to $350,000 for any one borrower (Sec. B, Ch. 2, Para. B.1). 13 CFR § 120.10 describes a CA SBLC as a nonprofit lender licensed for 7(a) loans, and includes grandfathered pilot lenders.
What SBA's evaluation found
SBA found the record on job creation and business creation unclear (88 FR 69003, at 69004). It also reported weaker loan performance (at 69007):
- The early problem loan rate on pilot loans averaged 8.28% through the second quarter of FY 2023.
- The same measure for the entire 7(a) portfolio was 2.61%.
- SBA treats 4% or higher as the threshold for higher-risk loans.
What to look at instead
- SBA Express. Loans and lines up to $500,000, decided by the lender.
- 7(a) loans. 7(a) Small loans go up to $350,000, and Standard 7(a) loans go up to $5,000,000.
- Microloans. Up to $50,000 from an intermediary lender.
- A CA SBLC. SBA posts a CA SBLC list on sba.gov/sba-lenders (read November 8, 2026).
If you already have one of these loans
An outstanding Community Advantage Pilot loan still counts toward the $500,000 SBA Express limit for you and your affiliates (SOP 50 10 8.1, Sec. B, Ch. 2, Para. B.1). The notice directs pilot questions to your local SBA district office (88 FR 69003, at 69008).
What this page cannot tell you
The CA SBLC list SBA posts is dated May 1, 2024, so it may be out of date. Confirm a lender's current status with the lender or your SBA district office.
Ask a lending partner about a program that is open
This program has ended. Tell us the amount you need and what it is for, and we refer you to lenders that may fund businesses like yours. It costs you nothing.
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