SBA Expands Disaster Loan Program and Lenders

Congress has approved $2 billion in funding for the Small Business Administration (SBA) to resume its disaster loan program, crucial for those impacted by recent disasters in Siouxland. This funding allows the SBA to support residents and businesses recovering from events like the June floods and hurricanes in the southeastern U.S. Additionally, the SBA has expanded access to its 7(a) loan program by granting licenses to four new Small Business Lending Companies (SBLCs), aimed at enhancing capital access for underserved communities. The new SBLCs—A10 Capital, Cooperative Business Services, Lafayette Square, and Stonehenge Capital—will provide federally backed loans, focusing on low-income and rural entrepreneurs. SBA Administrator Isabel Casillas Guzman emphasized the importance of these initiatives in addressing long-standing barriers to capital and supporting small business growth. Both measures reflect the Biden-Harris Administration's commitment to revitalizing local economies and supporting new entrepreneurs.