PACE is pleased to announce that its subsidiary PACE Finance Corporation (PFC), a designated SBA Community Advantage lender, has been granted permission to sell the guaranteed portion of their Community Advantage loans on the secondary market. PACE is a longstanding and valued SBA partner and this new ability will further enhance PACE’s capacity to assist small business borrowers and make additional loans available.
Microloans and small business loans are crucial for the start-up or expansion of minority-owned small businesses in Los Angeles. PACE believes in promoting small business growth because it provides jobs, brings economic opportunities to low-income communities, and has the power to reinvigorate the local economy.
PACE Finance Corporation (PFC) has just been granted the right to participate in SBA Community Advantage – Secondary Market. PFC staff members were made aware of the secondary market eligibility during a late 2014 SBA-led training event held in Detroit. Participation in the secondary market will allow PFC to sell the SBA Community Advantage guaranteed portion of each loan (approximately 85%). Thus allowing PFC to make another loan using the sales proceeds, earn a premium, and continue servicing the loan and receive a fee of 1% to 2% of the loan sold.
Since 1993, PACE’s Business Development Center (BDC) has provided training, counseling & access to capital for 29,321 business owners & entrepreneurs. Over the past 21 years, PACE BDC and PFC have either directly provided or arranged for small businesses to access more than $442 million in financing. These businesses have created more than 15,600 jobs.
For more information on PACE Finance Corporation or our lending activities please visit our website at pacelabdc.org/business-loans/.