Lafayette Square has been awarded one of four new small business lending company (SBLC) licences by the US Small Business Administration (SBA), allowing the firm to expand its lending operations.
The new licence will allow Lafayette Square to expand into 7(a) lending. This is the SBA’s primary business loan program, which provides loan guarantees to lenders that allow them to provide financial help for small businesses with special requirements.
This is Lafayette Square’s third licence granted by the SBA, including two small business investment company (SBIC) licences.
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There are currently 20 SBLC licences in the US marketplace.
“This SBLC licence strengthens our securitisation function to reach a broader range of underserved markets while maintaining conservative underwriting,” said Damien Dwin, founder and chief executive of Lafayette Square.
“Combined with our existing SBIC licences, we are uniquely positioned to access low-cost, long-duration funding to support small businesses, particularly those in underserved areas.”
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“With private markets playing an increasingly important role in small business lending, this expansion delivers against the Biden-Harris Administration’s unwavering commitment to providing affordable financing to the incredible entrepreneurs and new business starts revitalising Main Streets across America,” said administrator Isabel Casillas Guzman, head of the SBA.
“Congratulations to the four new licensees as they work alongside the mission-focused teams at the SBA to put the American dream of business ownership within reach for more entrepreneurs.”
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