COVID-19 Loans Available For Alabama Small Businesses, Nonprofits

BIRMINGHAM, AL — Small business owners and nonprofits across Alabama can begin applying Tuesday for low interest loans of up to $100,000 and free business support through the Southern Opportunity and Resilience Fund.

The SOAR Fund covers Alabama, Arkansas, Delaware, Florida, Georgia, Louisiana, Maryland, Mississippi, North Carolina, Oklahoma, South Carolina, Tennessee, Texas, Virginia, West Virginia and the District of Columbia.

According to the U.S. Census Bureau Small Business Pulse Survey, 58 percent of Alabama small businesses have less than two months cash on hand and one-third of small businesses in the state expect to seek capital in the next six months.

The SOAR Fund has more than $50 million in initial commitments —provided by philanthropic, private and corporate investors—and aims to eventually lend $150 million or more to small businesses and nonprofits with fewer than 50 employees in 15 southern and southeastern states, including Alabama.

The loans are designed to reach small businesses and those that have been historically underbanked, including those in rural areas and those owned by women, people of color, and immigrants. These businesses often struggle to access capital from traditional sources but are critical to providing jobs and supporting economic recovery in communities across the South.

The Fund works with and through local Community Development Financial Institutions, which have been serving the types of un-and underinvested businesses the SOAR Fund aims to help.

Eligible applicants will be matched with a participating lender that will assist the business owner with the application and provide advisory support. Applicants will be able to sign up online and get matched to a lender in less than five minutes.

Thirteen CDFIs are originating loans purchased by the Fund, including Access to Capital for Entrepreneurs, Accion Opportunity Fund, Ascendus, BCL of Texas, Black Business Investment Fund, Communities Unlimited, LiftFund, NCIFund, NDC’s Community Investment Loan Fund, Pathway Lending, People Fund, Southern Bancorp Community Partners, and TruFund Financial Services.

As a collaborative, these lenders have full reach across the region, have served on the front lines of the economic crisis and have decades of experience providing high-touch lending and advisory services to small businesses and nonprofit organizations.

The CDFIs are supported by leading technical assistance and business support organizations including Winrock International, LISC’s local offices and national rural program, and Small Business Majority, which will help with outreach, education, and hands-on business advisory services. Calvert Impact Capital is arranging and LISC Fund Management is managing the Fund.