LOS ANGELES--(BUSINESS WIRE)--Despite the shutdown this week of the Small Business Administration (SBA) 7(a) loan program, VEDC’s $65 million in available capital will allow the non-profit to continue serving small businesses with direct and SBA loans. VEDC capital is available to lend in California, Nevada, Utah, Illinois, Florida, Connecticut, New Jersey, and New York.
SBA 7(a) loans are used to launch start-up businesses, as well provide ongoing capital for a wide range of operational needs. SBA processed $3 billion in loans, which is more than five times the normal volume, since the beginning of July as entrepreneurs rushed to secure funding before the money ran out. Unless Congress approves a stopgap measure, SBA loans will not be available again until the new fiscal year begins on October 1.
SBA halted its biggest lending program Thursday after reaching the $18.75 billion loan guarantee limit set by Congress.
However, VEDC will still be lending through a variety of loan programs from funds provided by UBS, Goldman Sachs 10,000 Small Businesses, Chase, Wells Fargo, Comerica, Bank of America, California United Bank, US Bank, City National Bank, Citibank, Capital Impact Partners, Tides Foundation, Union Bank, Rabobank, Charles Schwab, and Sam’s Club.
“VEDC has clients that are now in the SBA queue that cannot wait until October 1 to receive funds,” says Lynn Fernandez, Vice President of Lending for VEDC. “These loans represent jobs to created and saved in an effort to strengthen our economy. For now, we will fund these clients directly through VEDC loan programs. We will take care of our clients.”
For information on VEDC loan programs, visit www.vedc.org or call 800-304-1755.
About VEDC
VEDC is a leading non-profit small business lender that is changing the way small business lending is done by making it more available and impactful. As a national small business lender, VEDC has lent $380 million in direct and guaranteed loans to over 100,000 small businesses and created more than 28,000 new jobs. VEDC’s mission, as a certified Community Development Financial Institution (CDFI), is to help create jobs and promote economic development in under-served communities. It provides loans and micro-financing options to small businesses, particularly those owned by women and minorities, that don’t qualify for traditional bank financing. VEDC’s expanding portfolio is composed of community-based loan funds in California, Illinois, Nevada, Utah, New Jersey, Connecticut, Florida and New York. For more information visit www.vedc.org
