The U.S. Small Business Administration has finalized two rules to address persistent gaps in access to capital affecting small business owners in underserved communities. According to a news release, the final rules grant permanence to SBA’s program for nonprofit mission lenders, remove outdated limits on non-depository lender participation, increase opportunities for employee ownership, and modernize the credit criteria and underwriting standards to further incentivize a wider distribution network and small-dollar loans. The updated lending criteria for the SBA’s 7(a) and 504 loan programs include allowing lenders to make SBA loan decisions based on their existing credit policies for similarly-sized non-SBA loans and providing additional flexibility for loans under $150,000 to reduce the cost and complexity of small-dollar lending. The rules will expand the number of Small Business Lending Company licenses, allowing for more lenders who can offer SBA-guaranteed loans. The number of SBLC licenses has been capped at 14 for 40 years, limiting potential lending options for small businesses. “It’s imperative that entrepreneurs from underserved communities have access to stable and affordable capital to grow and expand their businesses,” Patrick Kelley, associate administrator for the SBA’s Office of Capital Access, said in a prepared statement. A reference to the rules are available in the Federal Register here and here.