Community Advantage Loan Program Act of 2023

The Community Advantage Loan Program Act of 2023 establishes a new Small Business Administration program to increase lending to small businesses in underserved and rural markets. It requires participating lenders (nonprofits, community development financial institutions, and similar mission-oriented organizations) to make at least 60% of their loans to small businesses in underserved markets, with maximum loan amounts of $350,000 (or $750,000 for experienced lenders). The bill mandates detailed reporting on loan demographics, loan sizes, and geographic distribution, and establishes loan loss reserve requirements for participating lenders. The program aims to help small business owners in underserved communities access capital they might not otherwise receive through traditional lending channels.