Yesterday was a big day for us. We were all glued to our computer screens as our President and CEO, Kurt Chilcott, had the wonderful opportunity to be recognized on stage by former President Bill Clinton at the Clinton Global Initiative in Denver.
This special acknowledgement at CGI was brought about by a grant from Bank of America that will allow us – the nation’s leading Community Advantage lender – to reach more eligible small businesses in Los Angeles County. This county has seen a 70% drop in small business loans under $100,000 from 2007-2012, according to a recent California Reinvestment Coalition report.
Since its inception, the Community Advantage program has provided $100 million to small businesses via 744 approved loans. CDC has approved 123 of these loans for $21 million.
“The Community Advantage program has reached a milestone in its success, but we all can do more,” said Chilcott. “Our goal in L.A. County is to create 240 new jobs in underserved communities through Community Advantage lending.”
According to a Bank of America grant summary: “Small businesses find it increasingly difficult to borrow growth capital in the loan size between $50,000 and $350,000. Yet this capital is among the most valuable to small businesses – larger than the amounts supportable by the business owners’ personal credit, but too small to be obtained as part of a real estate purchase transaction. Businesses need loans in this ‘missing middle’ range to expand operations, hire more workers and serve new markets.”
Through all its lending programs,– including SBA-504 loans for commercial real estate and SBA microloans – CDC Small Business Finance has provided over $4 billion in financing to small business in 37 years, leading to the creation of more than 130,000 jobs.