Los Angeles, CA (PRWEB) October 31, 2012
The dollar volume of Small Business Administration financing approved for commercial real estate purchases in greater Los Angeles increased 36% over last year, according to CDC Small Business Finance.
Through the SBA’s 2012 fiscal year (Oct. 2011 - Sept. 2012), $1.2 billion in financing was approved via 578 SBA-504 loans to help small businesses purchase commercial/industrial buildings. In FY11, $882 million was approved through 446 SBA-504 loans.
“Property values are bouncing back and more small businesses, motivated by the low rates, are coming off the sidelines to purchase commercial real estate again,” said Dean Aloe, senior commercial loan officer for CDC Small Business Finance.
More than 4400 jobs are projected to be created in the Los Angeles region as a result of SBA-504 financing approved in the last 12 months.
CDC Small Business Finance approved 184 SBA-504 loans, partnering with banks to provide more than $196 million in financing for the same 12-month period. Bank of America led all banks in SBA-504 financing, partnering with certified development companies on 97 loans in fiscal 2012.
The 504 loan program was created by the SBA for the specific purpose of financing long-term fixed assets such as commercial real estate and equipment with economic life of 10 years or greater.
The current SBA-504 rate is under 5%. For a six-year history of monthly SBA-504 rates, go to Rate History.
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CDC Small Business Finance is a non-profit lender that provides capital to small business so they can expand, grow and create new jobs in California, Arizona and Nevada. In 34 years of operation, CDC has provided over $8 billion in loans for more than 7,000 small businesses, which have in turn created or preserved over 100,000 jobs. For more