The FSC First, Small Business Growth Fund, has met the eligibility requirements to qualify for delegated lending authority from the U. S. Small Business Administration, under the SBA 7(a) Community Advantage Guarantee Program. This pilot program allows mission-focused Community Development Financial Institutions (CDFIs), like FSC First, to receive SBA 7(a) guarantees on direct loans up to $250,000.
Linda S. Rusche, Director, SBA Office of Credit Risk stated in a letter dated March 20, 2017 that “SBA conducted a review of [FSC First] organizational, financial and operational strengths, as well as [FSC First] knowledge of SBA Loan Program Requirements and [FSC First] ability to adequately underwrite small business loans. Based upon this review, SBA has approved [FSC First].”
President & CEO, Shelly M. Gross-Wade said “the primary benefit of obtaining the delegated authority is that FSC First can now approve, close and fund loans, with the SBA Community Advantage guarantee, without sending them to the SBA for prior review and approval. These direct loans must meet and maintain the eligibility requirement for the 75% or 85% guarantee from SBA. We are excited to be able to close and fund our loans quicker.”