This bill codifies and expands the Community Advantage Loan Program, a Small Business Administration initiative that provides loan guarantees to help small businesses in underserved areas access financing. The program targets new businesses, rural communities, low-income neighborhoods, veteran-owned businesses, and other disadvantaged groups that typically struggle to obtain credit on reasonable terms. Eligible lenders include nonprofits, community development financial institutions, and other mission-oriented organizations that have demonstrated experience making similar loans. Under the legislation, at least 60 percent of loans made through the program must go to small businesses in underserved markets, with loan amounts capped at $350,000 for most lenders and up to $750,000 for experienced lenders. The bill requires the SBA to provide training and oversight, conduct outreach to potential lenders, maintain detailed reporting on loan approvals broken down by borrower demographics and location, and submit annual reports to Congress. The Government Accountability Office must evaluate the program's success within five years and recommend improvements.
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