- Funds through the Small Business Association’s Community Advantage Recovery Loan program must be approved by Sept. 27
- Flexible funding can be used to cover a variety of expenses
- 15 hours of technical assistance required for approval
Small businesses interested in receiving a loan of up to $250,000 are running out of time to get the loan approved. The Small Business Association’s Community Advantage Recovery Loan (CARL) program requires that funds distributed through the program must be approved by Sept. 27 and disbursed no later than Oct. 1.
The SBA announced the program in July, describing CARL as a way to provide financial and technical assistance to small businesses in underserved areas as a way to adjust their business models for the COVID-19 environment and to build financial resiliency against future financial disruptions. Funds can be used for working capital or to purchase equipment, inventory, or real estate.
Loans approved through CARL can be between $50,000 and $250,000, with a 10 percent minimum down payment. The minimum period for the loan is five years, though it can extend up to 25 years if funds are used for real estate purchases.
Recipients must also complete a minimum of 15 hours of technical assistance advising, which is provided for free by the CARL lender or on their behalf. Topics are tailored to the applicant’s business and may include issues such as retooling a business model, shifting to an online presence, reducing expenses, and building cash reserves.
