We’re encouraged by the overall increase in activity through three quarters. And more small businesses are taking advantage of the SBA’s refinancing program before it expires in September.
Los Angeles, CA (PRWEB) July 24, 2012
After three quarters, Los Angeles area commercial real estate financing utilizing the SBA-504 loan program continues to show improvement over last year, according to CDC Small Business Finance.
CDC reported that SBA-504 loan financing approved through June 30 reached $738 million, up from $606 million for the same nine-month period a year ago. SBA’s fiscal year runs from Oct. 1 to Sept. 30.
“We’re encouraged by the overall increase in activity through three quarters,” said Dean Aloe, senior loan officer for CDC Small Business Finance. “And more small businesses are taking advantage of the SBA’s refinancing program before it expires in September.”
Aloe said that $81 million of the $738 million in SBA-504 program financing was used to refinance properties.
The most active banks that partnered with CDCs on SBA-504 loans for the three-quarter period were Bank of America (60 loans, $115 million total financing), JP Morgan Chase (44 loans, $85 million total financing) and City National Bank (25 loans, $53 million total financing)
Over 2,900 new jobs are projected to be created in the Los Angeles region as a result of SBA-504 financing approved in the last nine months.
CDC Small Business Finance itself approved 120 SBA-504 loans in Los Angeles for the nine-month period, partnering with banks to provide $250 million in financing to area small businesses.
The SBA refinance program – which ends this September – is available to small businesses facing balloon payments on commercial property mortgages. The current refinance rate through this program is 4.66%.
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.
About CDC Small Business Fiance
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 Navada. 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 information - http://www.cdcloans.com