What is the Community Advantage Recovery Loan (CARL)

By Jody H. Chesnov CPA | September 3, 2020

The Community Advantage Recovery Loan is a new, temporary, program offered by the SBA. It is based on the Community Advantage loan program and targets underserved businesses who need to retool or adjust their business model as a result of COVID-19.

How the Community Advantage Recovery Loan works

The program specifically targets underserved markets, which the SBA defines as:

  • Low-to-Moderate Income (LMI) communities (CA Lenders are encouraged to serve low and very low-income communities);
  • Businesses where more than 50% of the full-time workforce is low-income or resides in LMI census tracts;
  • Empowerment Zones and Enterprise Communities;
  • HUBZones;
  • New businesses (firms in business for no more than two years);
  • Veteran-owned businesses;
  • Promise Zones;
  • Opportunity Zones; and/or
  • Rural Areas.

These loans are available through Certified Development Companies. They make the loan and also provide 15 hours of financial and technical assistance.

This assistance should help the borrowing companies make changes to adapt to business conditions in the COVID-19 environment and strengthen their ability to manage through challenges.

Community Advantage Recovery Loan Terms

Loan Amount: $50,000 to $250,000

  • Minimum 5 years,
  • 10 years for working capital & equipment,
  • 25 years for real estate

Interest Rate: Maximum Prime + 6%

The SBA will cover the first 6 months of the loan under Section 1112 of CARES Act.

Where to apply for a Community Advantage Recovery Loan


Find a Certified Development Company here.

Lenders must approve the loan by Sept. 27, 2020, and disburse all funds before Oct. 1, 2020.

Posted in COVID-19