WASHINGTON, April 17, 2012 /PRNewswire-USNewswire/ -- The Intermediary Lending Pilot Program (ILP), which provides long-term loans to eligible non-profit intermediary lenders to finance their lending to small businesses, has opened a second competitive application period. As a result, small businesses, especially those in underserved markets looking for loans up to $200,000, will soon have access to twice as many community-based funding sources under the U.S. Small Business Administration program.
"Providing small businesses with the financial resources they need to start, grow and succeed is at the core of SBA's mission," said SBA Administrator Karen Mills. "The first round of the Intermediary Lending Pilot Program showed that we are on the right track, and now we are expanding it. These non-profit lending institutions are helping small businesses create jobs and strengthen our economy."
Launched last year under the Small Business Jobs Act of 2010, the Intermediary Lending Pilot Program is designed to expand access to capital to small businesses and drive economic growth and job creation. Under the program, SBA makes loans of up to $1 million to participating lenders, which use the funds to make smaller loans to startup, newly established and growing small businesses. SBA anticipates that an ILP Intermediary will relend its ILP Loan funds approximately 2.5 times over the 20-year term.
The program funded 20 ILP Intermediaries in 2011, and hopes to identify another 20 this year in the second round. If Congress appropriates additional funds for the ILP program, SBA will select another 20 ILP Intermediaries in fiscal year 2013, for a maximum of 60 intermediaries.
Completed applications are due no later than May 25, 2012.
Eligible intermediaries must have at least one year of lending experience, and include private, nonprofit community development corporations, consortiums of private, nonprofit organizations or community development corporations, or agencies or nonprofit entities established by Native American tribal governments. Intermediaries currently participating in the Microloan program are not eligible to become ILP lenders; however, affiliates of Microloan intermediaries may apply if they can demonstrate at least one year of lending experience.
Small business owners and entrepreneurs interested in more information about the ILP program can contact their local SBA District Office or send an e-mail to [email protected]. To locate your local SBA office, visit www.sba.gov/about-offices-list/2.