U.S. Small Business Administration Now Accepting Applications for Small Business… – Press Release

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WASHINGTON, June 01, 2023 (GLOBE NEWSWIRE) — Today, Administrator Isabella Casillas Guzman, head of the U.S. Small Business Administration (SBA) and the voice for America’s 33 million small businesses in President Biden’s Cabinet, opened a window for new applications for Small Business Lending Company (SBLC) licenses for the first time in over 40 years. New applicants may apply between June 1, 2023, and July 31, 2023.

SBA approves Small Business Lending Company Licenses for selected non-depository lenders to increase responsible small business lending. An SBLC license allows the lending organization to utilize government guarantees when underwriting small business loans to reduce the level of risk to the lender and cost to the borrower. As a result, SBLCs are positioned to write higher volumes of loans to small businesses than possible without a government guarantee. There are currently 14 SBLC licenses in the marketplace today. An SBA rule finalized last month lifted the moratorium on additional licenses.  SBA will issue up to three new licenses to qualified lenders based on a review of applications received during this application window.

“The Biden-Harris Administration recognizes that small businesses are the drivers of our economy and that to participate in the opportunities created by the President’s Investing in America agenda, they need capital,” said Administrator Guzman. “The expansion of SBA’s loan programs will help ensure more borrowers can get funded through a broader network of lenders so they can help build a strengthened American economy that innovates, manufactures, and provides the products and services that make our lives better.”

New Application Criteria and Considerations for Applicants
SBA will evaluate new SBLC applicants on a range of criteria, which include:

  • The lending policies of the proposed SBLC and their alignment with SBA’s mission;
  • Historical performance measures, such as default, purchase, and loss rate; 
  • Whether the applicant…

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