Cooperative Business Assistance Corporation (CBAC) is a Community Development Financial Institution dedicated to small business lending in low-income urban areas in Southern New Jersey. By strengthening small businesses, CBAC creates jobs, provides necessary services to local residents, and rehabilitates vacant properties. Since its inception, CBAC has made 770 loans totaling over $30.8 million and has retained and created approximately 5,142 jobs. CBAC's borrowers have increased Camden's real estate tax base by over $50 million.
CBAC loans leverage private equity investment and loans from the private sector. These services are offered in conjunction with eight commercial banks including Bank of America, Commerce, Wachovia, PNC, Sun National, Susquehanna Patriot, TDBanknorth, and Citizens Bank. CBAC offers loans to businesses for as little as $1,000 and up to $2,000,000 through its various loan and guaranty programs, as follows:
- U.S. SBA 504 Loan Program, CBAC packages SBA 504 Loans up to $2,000,000.
- U.S. SBA Microloan Program, CBAC makes direct SBA Microloans of up to $35,000 to small businesses for working capital, inventory, and equipment purchases.
- Commercial Loans from $30,000 to $250,000 are available for new enterprises and existing businesses.
- Fixed Asset Loans up to $500,000 are available to businesses with at least two years of positive operating experience.
- Loan Guaranty Program provides a guaranty up to 40 % of a conventional bank loan or $75,000 which ever is less.
Investments by banking institutions, as well as institutions such as Calvert Foundation, provide lending capital to CBAC.
CBAC is committed to serving a diverse group of clients as 65 percent of its loans have been given to minority and/or women owned businesses. The breakdown in diversity of CBAC's clients is as follows: 35 percent African American, 20 percent Latino, and 45 percent White. Ninety percent of CBAC borrowers are from major urban communities, 6 percent are from minor urban communities and 4 percent are from rural areas.
In FY2008, CBAC capitalized 53 loans totaling $11.6 million. Of that total, $2.18 million was provided by CBAC, which assisted in leveraging private dollars totaling $9.3 million. These loans help to fund 20 women-owned microenterprises and 21 minority-owned small businesses. Through all the microenterprises and small businesses that CBAC helped finance, a total of 60 jobs were created. Since inception, CBAC has significantly strengthened the small business sector, creating or retaining approximately 5,142 jobs in Southern New Jersey and increasing the income levels of impoverished families.
CBAC loans go out to a diverse set of borrowers, and many empower family-run businesses struggling against nature to achieve business success. In cooperation with a local bank, CBAC made a crucial original loan of $25,000 to assist in purchasing and installing electronics for the Rainbow, a boat in Sea Isle City that can now effectively sell heating oil in the winter and deliver marine fuel in the summer. Full Story