Learn more about the benefits and details of this U.S. Small Business Administration loan product and how it can transform your business.
We know how challenging it can be to run a small business. As a busy entrepreneur, seeking out the perfect capital option for your growing business can be confusing and time consuming. We want to take the guess work out of finding the right small business loan.
DreamSpring is excited to share that we are an SBA Community Advantage lender! This innovative pilot loan product provides larger pools of capital to eligible small businesses.
Rhoda Johnson | Owner, Rhoda Design Group | Aurora, CO
Here’s how to know if the Community Advantage loan is the right fit for your small business:
- You’re looking for a loan ranging from $50,000 to $350,000.
- You have a credit score of 650+.
- You’re looking for a term of 5 to 10 years.
- You’re seeking funding for starting a business, acquiring a business, business expansions, facility renovations, equipment purchases, or working capital.
- You have a project down payment of at least 10%.
- Your business is located in one of the following states: Arizona, Colorado, Nevada, New Mexico, or Texas.
Community Advantage loans offer competitive terms and more flexible underwriting than traditional loans. The government guarantee helps lenders extend more credit, so loan amounts are larger than typical microloan products. This product is a great option for small business owners who wouldn’t otherwise qualify for SBA loan products. The government guarantee offers a larger pool of funds at lower interest rates and with longer repayment terms. There may be additional paperwork required to meet the federal documentation guidelines, but it is well worth it in the long run.
If your business is a for-profit and you meet the SBA’s definition of a small business (fewer than 500 employees and annual revenues under $15 million), you may be eligible. Small business owners must also demonstrate a need for financing and have equity (personal resources) in the business. Each lender has their own eligibility criteria, too, and demonstration of an ability to repay the loan will help you qualify.
Like DreamSpring, many SBA Community Advantage lenders also offer technical assistance and business resources to help entrepreneurs on the path to capital access and small business growth. If you’re looking to work with a lender that provides coaching and educational support, this loan product may be a perfect fit!
DreamSpring lends $50,000 to $350,000 with Community Advantage loans. The loan terms are from 5 to 10 years, and we have options for limited collateral. The interest rate is the Wall Street Journal prime rate + 6% (simple annual). Currently, SBA Community Advantage loans are available through DreamSpring in Arizona (AZ), Colorado (CO), New Mexico (NM), Nevada (NV), and Texas (TX).
We’re working on expanding our service area for Community Advantage loans, so please check back if you’re interested in an SBA Community Advantage loan but don’t live in one of the states listed above. We also have other loan products if you’re looking for small business capital but don’t see your state listed.
Only for-profit small businesses are eligible to participate in the SBA Community Advantage program at this time; nonprofits cannot apply. If your small business generates passive income or you’ve been in default on other debt, you may not be eligible.