WASHINGTON — Credit unions and banks are being called on by the Small Business Administration to help provide capital to entrepreneurs in some of the country's most rural areas through a series of new programs.

The first initiative set to debut is the agency's Rural Lender Advantage program, which aims to help entrepreneurs in rural areas obtain access to capital by encouraging smaller community banks and credit unions to partner with SBA.

Some of the key features of Rural Lender Advantage are SBA's guaranty of 85% if the loan is $150,000 or less and 75% if the loan is more; a new; “user friendly” 7(a) loan portal designed to meet the needs of small/rural lenders for SBA loans of $350,000 or less; and a simplified SBA loan questionnaire to help small or occasional lenders understand eligibility criteria. The agency will test the program in Montana, North Dakota, South Dakota, Wyoming, Utah and Colorado this year.

According to SBA, small businesses account for two-thirds of all rural jobs, but there are nearly 400 fewer banks nationwide using the agency's programs than there were two years ago mainly due to time or staff constraints or not having the technical capability to comply with SBA's loan criteria.