Opportunity Finance Network Small Business Forum

Last week our staff attended the OFN Small Business Forum held in our hometown of Chicago.  The forum was an excellent opportunity to catch up with a number of our clients and industry colleagues as well as to learn more about the opportunities that exist for CDFIs to better serve entrepreneurs and small businesses.

One such opportunity that we were particularly interested to learn more about was the SBA’s Community Advantage Program.  The program was launched early last year as a pilot program with the express goal of increasing the number of SBA 7(a) lenders in underserved communities by targeting community-based and mission-focused lenders, including CDFIs, who were previously unable to offer these loans.  In her remarks at the forum, SBA Deputy Administrator Marie Johns outlined several upcoming changes to the program that should make it easier for more CDFIs to take advantage of the program.  Most notably, the pilot program has been extended through 2017.  Other potential changes include expanded access for lenders to the secondary market for the sale of the guaranteed portion of SBA loans, the establishment of lower loan loss reserve requirements, and more flexibility in interest rates.  With these program changes, the Community Advantage Program has the potential to become an important tool for helping CDFIs to expand their reach and impact among small businesses.

Overall, we really enjoyed attending the forum and thought sessions topics were both timely and informative and hope that OFN plans to offer more of these targeted forums in the future.