We are excited that President Obama and Congress felt it was appropriate to use the SBA’s existing 504 loan program to help reinvigorate small business lending. NADCO looks forward to continuing its dialogue with Members of Congress, the Obama team and the SBA as they work to implement these new policies.
Mc Lean, VA (Vocus) March 20, 2009
The National Association of Development Companies (NADCO), the trade association for the U.S. Small Business Administration’s (SBA’s) partner Certified Development Companies, applauded President Obama and his economic team on their strategy for thawing frozen credit markets that are hurting small businesses across the country. NADCO members provide long-term financing to small business entrepreneurs through the SBA 504 loan program to purchase and construct commercial real estate.
NADCO President, Chris Crawford, attended the White House announcement Monday on the implementation of the Recovery and Reinvestment Act when President Obama rolled out the first phase of his plan to assist small businesses. “It is very encouraging to see President Obama and Treasury focusing on the urgent financial needs of America’s small businesses during these difficult economic times,” Crawford said.
NADCO actively advised the Congressional Small Business Committees on commercial lending measures that would be the most beneficial to small business borrowers for inclusion in the Recovery and Reinvestment Act. “We were gratified to see one of our early recommendations – the temporary elimination of fees for SBA 504 loans – become law on February 17,” Crawford remarked today during NADCO’s annual Government Relations Conference in Washington, DC.
Buildings are becoming more affordable now due to falling real estate prices and more attractive financing options. The temporary elimination processing and bank fees on SBA 504 loans will be a great incentive for small businesses who may now be considering purchasing real estate. Small business groups and chambers of commerce have commented that the President’s plans should make SBA’s 504 Loan program more attractive and more accessible to business owners.
Additionally, NADCO, working with banks and loan poolers, proposed that a mechanism for guaranteeing SBA 504 first mortgages in the secondary market be established by SBA to get money flowing again throughout the banking industry. The Recovery and Reinvestment Act includes up to $3 billion in 504 pool guarantees that will assist hundreds of banks in funding 504 loans to growing small businesses.
President Obama announced on Monday that Treasury will provide even greater assistance to the 504 program and its first mortgage lenders by authorizing the Treasury Department to directly purchase billions of dollars of 504 bank first mortgages. This will continue to add liquidity to banks across the country providing long term real estate loans.
Steve Suite, NADCO Chair remarked, “We are excited that President Obama and Congress felt it was appropriate to use the SBA’s existing 504 loan program to help reinvigorate small business lending. NADCO looks forward to continuing its dialogue with Members of Congress, the Obama team and the SBA as they work to implement these new policies.”
About the National Association of Development Companies (NADCO)
Created in 1981, the National Association of Development Companies is the trade association for America’s Certified Development Companies (CDCs). Certified by the U. S. Small Business Administration, CDCs are community-based economic development organizations that serve their local communities and states, and are dedicated to the promotion of small business expansion and job creation through SBA’s 504 Loan Program. In addition to the 504 program, many CDCs also provide small businesses with access to other Federal, state and local economic development loan programs.
Based in the suburbs of Washington, D.C., NADCO provides legislative and regulatory support for the 504 Loan Program on behalf of CDCs, the program’s lending partners (including first mortgage lenders, attorneys and others allied to the industry), and 504 small business borrowers. For more information, please call (703) 748-2575 or visit http://www.nadco.org.