SBA Rescinds Community Advantage SBLC Loan Ceiling Expansion

Overview#

The SBA has issued Procedural Notice 5000-865355, rescinding the previously issued Procedural Notice 5000-864101. This rescission ends the program that allowed Community Advantage Small Business Lending Companies (CA SBLCs) to apply for expanded 7(a) loan ceiling authority.

What Was Rescinded#

PN 5000-864101 (Now Rescinded)#

The rescinded notice, effective January 15, 2025, had:

• Expanded the 7(a) loan ceiling for approved CA SBLCs
• Established an application process for qualifying lenders to request loan size increases
• Allowed qualifying CA SBLCs to apply for expanded lending authority

Effect of Rescission#

With this rescission:

• CA SBLCs can no longer apply for expanded loan ceiling authority under PN 5000-864101
• Previously approved expansions may be affected (consult SBA for specific situations)
• Standard CA SBLC loan limits remain in effect

Who This Affects#

• Community Advantage SBLCs: Cannot apply for loan ceiling expansion under this program
• Borrowers: May need to use other SBA lenders for larger loan amounts
• SBA Staff: Updated processing guidance

Impact on Borrowers#

If you were planning to obtain a larger 7(a) loan through a Community Advantage lender:

1. Standard Limits Apply: CA SBLCs operate under standard program limits
2. Alternative Lenders: Consider PLP or other 7(a) lenders for larger loan amounts
3. Check with Your Lender: Confirm current lending capacity

Effective Date#

This rescission became effective March 14, 2025.

Official Source#

Review the complete procedural notice on the SBA website.