New SBA SBLC Loan Category to Allow More Tailored Financing for NYC Small Businesses
by Jason Kohl
Accompany Capital was recently granted new licensing from the US Small Business Administration as a Community Advantage Small Business Lending Company (SBLC), a new type of lending entity created by the SBA to succeed their original pilot program.
Our loan team had already been making 7(a) Community Advantage Loans under the pilot program for several years – we were the top provider in New York State in 2023 – so we are extremely pleased that the program has now been made permanent and that the provisional 2023 moratorium on licensing new SBLCs has now been lifted.
The creation of this new program is an exciting development for the small business lending industry with the potential to have a significant impact in several ways. By providing enhanced access to capital to underserved communities – something that AC has been committed to since our formation in 1999 – the program will help foster economic growth for underserved borrowers and markets. It will provide diverse lending options that can serve a broader spectrum of small business requirements. It will generate increased competition, which will encourage lenders to embrace streamlined processes in order to remain competitive, something Accompany Capital continues to focus on. In addition, it will inspire greater attention to risk and oversight since, while new lenders bring opportunities, careful oversight is essential to protect borrowers.
Visionary Clients Benefiting from the Expanded Program
Recent clients who have benefited from Accompany Capital’s 7(a) CA Loans include Adaptive Green, a certified Minority Business Enterprise that specializes in green roofs, stormwater management systems, and rooftop amenities. With proprietary technology, they have designed, installed, and maintained over half a million square feet of green roofs and sustainable landscapes in the New York Metropolitan area for a client portfolio that includes projects for the United Nations, Lendlease, and Turner. Adaptive Green will be using their 7(a) financing to support fulfilling their upcoming contracts and continuing their mission is to make cities healthier places to live.
Another exciting Accompany Capital client benefiting from the SBA CA program is Alpha Drones USA, a New York based – but internationally recognized – leader in aviation and commercial drone services for corporations, organizations, real estate companies, the agriculture industry, and consumers. Their CA financing has allowed them to add to their fleet, increase outreach, and support their growing roster of clients and contracts.
New York’s restaurant sector also stands to benefit from the program. Accompany Capital client Boondee Moo Ka Ta used CA funds last May to design and build out their new restaurant in Queens. An instant success, garnering great reviews and a loyal clientele, Boondee Moo Ka Ta has also succeeded in creating a popular new restaurant category for New York foodies – Thai Barbeque – and Accompany Capital is proud to be part of their continuing success.
We are excited to be part of the SBA 7(a) Community Advantage Small Business Lending Company program and are looking forward to an enhanced ability to dedicate long-range capital and resources to make an even greater impact on NYC and the surrounding small business marketplace.