Community Advantage Loan Program Act of 2024

The Community Advantage Loan Program Act of 2024 establishes a new loan guarantee program under the Small Business Act to increase lending to small businesses in underserved markets, including rural areas, low-income communities, businesses owned by veterans or people with disabilities, and new businesses that typically struggle to secure credit elsewhere. The program requires covered lenders - such as community development financial institutions and nonprofit intermediaries - to make at least 60% of their loans to businesses in underserved markets, with maximum loan amounts of $350,000 (or $750,000 for experienced lenders) and no collateral required for loans under $50,000. Covered institutions must meet specific experience requirements and maintain loan loss reserves, while the program mandates detailed reporting on loan demographics, including business ownership characteristics, location, and loan size categories. The legislation aims to expand access to capital for small businesses that face traditional credit barriers by leveraging the expertise of mission-oriented lenders. It requires annual reporting to Congress on program performance and includes provisions for training and technical assistance to support lenders and borrowers.