American Lending Center Recognized for 7(a) Loan Program Support

American Lending Center Receives SBA Certification

American Lending Center (ALC) is making significant strides to support small businesses in their pursuit of financing. With the recent news of approval from the U.S. Small Business Administration (SBA), ALC is now a certified participant in the 7(a) Guaranteed Loan Program as a Non-Federally Regulated Lender (NFRL).

Importance of the 7(a) Loan Program

This certification empowers ALC to offer loans that are guaranteed through the SBA, which is vital for startups and small enterprises. The 7(a) Loan Program is the SBA’s main offering to assist small business owners in securing financing when conventional lending channels may not be accessible.

ALC's Commitment to California's Small Businesses

John Shen, the founder and CEO of ALC, expressed his enthusiasm for the certification. He stated, “This certification opens the door for us at ALC to help many Californian small businesses get the capital they need to succeed.” His sentiments reflect the company's dedication to supporting the economy and creating job opportunities within the local community.

Loan Structures and Responsibilities

The 7(a) loans are not fully guaranteed by the SBA, which implies that both ALC and the SBA share the risk of borrowers potentially defaulting on their loans. ALC is charged with the responsibility of originating, underwriting, and closing these loans. This assistance can cover a variety of business necessities, from operational capital to equipment purchases and property improvements.

The Application Process for NFRL Status

Scott Thompson, ALC’s Chief Lending Officer, noted the complexities involved in the NFRL application process. He stated, “The NFRL application process is complex and time-consuming. We’re pleased that we were able to meet all of the SBA requirements to be able to provide this great financing approach.” ALC had to undergo a thorough review that examined its internal control policies, lending practices, and overall management structure.

About American Lending Center and its Impact

Founded in 2009 and headquartered in Irvine, ALC is a mission-driven, non-bank lending institution that has been providing essential financing and support to small business owners and entrepreneurs. With a remarkable track record, ALC has facilitated over $1.65 billion in loans and investments, enabling numerous companies to grow and thrive.

Contributions During the COVID-19 Pandemic

The pandemic presented a unique set of challenges, but ALC rose to the occasion. The organization participated in the Paycheck Protection Program (PPP), rendering direct assistance to nearly 30,000 businesses across all 50 states and Washington, DC. Over the years, ALC has contributed significantly to job creation, aiding in the creation or retention of more than 100,000 jobs.

ALC's Vision for Underserved Communities

Shen's excitement for the 7(a) program is palpable as he believes it equips ALC with invaluable tools to foster business success and job creation within underserved communities. This aligns perfectly with ALC's mission and vision of making financing accessible to those who need it most.

Frequently Asked Questions

What is the significance of the SBA's certification for ALC?

The SBA's certification allows ALC to participate in the 7(a) Loan Program, enabling it to provide backed loans to small businesses that may not qualify for traditional financing.

How does the 7(a) Loan Program benefit small businesses?

This program is designed to assist startups and small businesses in obtaining funding that is accessible when they struggle to secure loans through conventional lenders.

What types of financing does ALC provide?

ALC offers loans for various business needs, including operational costs, purchasing equipment, and making property improvements.

How has ALC impacted the job market?

ALC has played a significant role in job creation, helping to create or retain over 100,000 jobs through its lending practices.

What initiatives has ALC taken during the pandemic?

During the COVID crisis, ALC was involved in the Paycheck Protection Program, supporting nearly 30,000 businesses nationwide.

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