RBAC becomes First Lender in New Jersey to Start

Making SBA Community Advantage Loans

MERCERVILLE, NJ – The U.S. Small Business Administration has approved the Regional Business Assistance Corporation (RBAC) a community-based, mission-focused lender in Mercerville to start accepting and processing Community Advantage loan applications from small business borrowers immediately, the SBA regional office announced today.

“Extending access to capital to small businesses in our underserved communities so they can thrive and create jobs is at the core of our mission,” said SBA Regional Administrator Jorge Silva-Puras. “We commend RBAC, its Executive Director William Pazmino for joining forces with SBA in helping small businesses succeed and strengthen our local economies throughout New Jersey.”

The new Community Advantage pilot program was announced by SBA in December and is designed to promote small business formation and growth in underserved communities – which were hit disproportionately hard by the recession – by increasing the availability of smaller sized loans.

The pilot is specifically aimed at expanding points of access to capital for small business owners by opening SBA’s 7(a) loan program to community-based, mission-focused financial institutions, including Community Development Financial Institutions, SBA’s Certified Development Companies and SBA’s nonprofit microlending intermediaries.

SBA began accepting applications on Feb. 15 from lenders that want to participate.  RBAC is the first New Jersey Community Advantage lender approved by SBA.

“SBA has a longstanding relationship with RBAC,” said SBA New Jersey District Director Alfred J. Titone. “They initially started as an SBA Microlender, and then became an SBA 504 Certified Development Company. Becoming an SBA Community Advantage lender will allow RBAC to provide underserved companies with SBA loans up to $250,000, while receiving the benefit of SBA’s guarantee from 75 percent to 85 percent.”

“Access to Capital is a major obstacle for small businesses in underserved communities,” said William Pazmino, Executive Director of RBAC. “Minority and women-owned businesses as well as businesses in rural areas have been among the hardest hit by the recent economic downturn. RBAC together with SBA’s Community Advantage loan program will provide capital and technical assistance to business owners in low to moderate income areas.”

According to Titone, Community Advantage leverages the experience that lenders like RBAC already have in lending in economically challenged markets.  “RBAC’s track record in lending, as well as their management and technical assistance expertise will go a long way in helping to make their borrowers successful,” said Titone. “Community Advantage only will complement the other SBA products that RBAC offers its customers.”

Community Advantage and Small Loan Advantage (for SBA’s Preferred Lenders) offer a streamlined application process for SBA-guaranteed 7(a) loans up to $250,000. Advantage loans come with the regular 7(a) government guarantee, 85 percent for loans up to $150,000 and 75 percent for those greater than $150,000.  Details on both programs are available at: http://www.sba.gov/advantage.  SBA will review and approve new lenders on a continuing basis.

RBAC will begin making Community Advantage loans immediately.  Those interested in the SBA Community Advantage loan program should contact Nathalia Giraldo at RBAC at 609-587-1133 ext 204 

Other SBA and County Loan Programs offer by RBAC are:


SBA 504

To purchase and Refinance Commercial Real Estate and Equipment, 51% owner occupied, down payment as low as 10%

Micro Loan

Up to $50,000 financed over 5 years, or less. Interest rate starts at 8%.  Micro loans are available to most small businesses throughout the State of New Jersey.


Mercer County Loan Fund

Loans up to $125,000 financed over five years, staring at 8%. Mercer County businesses only.