The U.S. Small Business Administration (SBA) is opening its Intermediary Lending Pilot Program (ILP) for a second round.
The ILP program provides long-term loans to nonprofit intermediary lenders so those lenders can in turn make loans to small businesses. The program, which launched last year under the Small Business Jobs Act of 2010, aims to make loans of up to $200,000 available to small businesses.
The SBA offers loans of up to $1 million to intermediary lenders under the program. Intermediary lenders that are eligible to receive those loans include agencies and nonprofit entities established by Native American tribal governments and private, nonprofit community-development corporations. Other lenders eligible to receive the loans include consortiums of private, nonprofit organizations or community-development corporations.
“The first round of the Intermediary Lending Pilot Program showed that we are on the right track, and now we are expanding it,” SBA Administrator Karen Mills said in a news release. “These nonprofit lending institutions are helping small businesses create jobs and strengthen our economy.”
The program funded 20 intermediary lenders in 2011, and SBA hopes it will fund another 20 in its second round this year. Congress will also have the option to approve a third year of funding to extend the program to 20 more intermediary lenders in 2013.
Organizations interested in becoming an intermediary lender in the ILP program’s second round must submit an application by May 25, 2012. Potential applicants can learn more at http://www.sba.gov/content/intermediary-lending-pilot or by e-mailing ilpp@sba.gov.
Small business owners who want to learn more about the ILP program can contact the U.S. Small Business Administration’s Syracuse office in suite 506 at 224 Harrison St. or at (315) 471-9393.
Contact Seltzer at rseltzer@cnybj.com