The SBAs Savviest Program

Forget everything you've ever heard about the U.S. Small Business Administration (SBA). The negative connotations may have been warranted in the past, but the SBA is different these days. The SBA is worth every penny of its more than $22 billion budget on the basis of a single program alone: the SBA 504 Loan Program for small business owners who want to acquire or develop their own facilities.

In fact, SBA 504 loans may rank as one of the most effective domestic economic development programs the federal government administers.

Lots of entrepreneurs ?? and far too many bankers, ironically ?? dismiss the SBA on the basis of its 7(a) lending program that always seems to need supplemental appropriations by the U.S. Congress.

The 7(a)'s reputation may or may not be deserved, but some of its negativity has managed to soil other truly effective SBA programs.

SBA 504 loans, by contrast, are a dynamo. They work; they work well; and unfortunately by some of the historical problems in the SBA's 7(a) program, a dark shadow has been cast over 504 loans causing not many people to know about them.

In fact, for too long, I have heard many otherwise knowledgeable lenders dismiss SBA 504 loans based on faulty and out-dated information.

I've been providing SBA 504 loans for more than eight years. Over two years ago, I founded Mercantile Commercial Capital, LLC to focus exclusively on providing 504 loans, and we're still the only lender nationwide to primarily do this. To date, we've closed more than 60 loans worth a total of more than $67 million in only 30 months of business. We offer other financing options too, but SBA 504 loans are by far our most popular and most rewarding program.

So far, every qualified 504 loan proposal we have submitted to the SBA has been approved and funded, or is soon to be funded.

The SBA knows the 504 is a hot property. Funding has grown about 22 percent a year since 2000. Last year, 504 loans helped fuel about $10 billion in total capital investments for 8,000 small businesses throughout the U.S. In fact, these loans helped create about 75,000 new jobs last year through the "equity savings" small business owners experienced.

Entrepreneurs, real estate brokers and accountants are gradually waking up to the fact that 504 loans were designed to level the playing field for small businesses in the marketplace. With 90% loan-to-cost financing of most commercial real estate projects, 504 loans are very powerful.

For the borrower, SBA 504 loans offer long-term, below-market, fixed-rate financing at better terms than are available from any private sector lender. And if that wasn't good enough, borrowers generally put half as much money down for 504 loans, which enable them to grow their businesses a lot faster. For every $50,000 of SBA guaranteed funds, small business owners need to create or retain one job in the next two years. It is in this way that 504 loans have become an engine for economic growth in America.

Lending amounts are generally not capped or limited and only non-public, for-profit businesses qualify. Three financial qualifications, however, set some limits: the borrower's small business must have a tangible net worth under $7 million; the operating company's net income for the previous two years must average less than $2.5 million annually; and the borrower cannot have liquid, non-retirement assets greater than the total project amount.

Most small businesses have no trouble meeting these qualifications. In fact, over 98 percent of all businesses in Florida, for example, qualify for SBA 504 loans.

What sorts of businesses make the most appropriate SBA 504 loan candidates? We see an extraordinary number of service professionals (physicians, attorneys, accountants, etc.), and we also finance plenty of franchisees, manufacturers and distributors. But in truth, any business with a track record or at least some solid, related experience is an appropriate SBA 504 loan candidate. The 504 Loan Program collateral requirements are generally limited to the commercial real estate facility that the loan finances, and approvals and closings happen in days and weeks, not in multiple-months as it was in the past.

Historically, the SBA was usually considered a lender of last resort. But compared to ordinary commercial financing, 504 loan terms and conditions are so good that for almost every small business, an SBA 504 loan should rank as their top choice.

Bankers have any number of reasons they've dreamed-up why not to consider SBA 504 financing and, to be candid, I'm okay with that. It just means we'll be here to help a lot more small businesses grow with our focus on the SBA's savviest program: 504 loans.

* * *

www.mercantilecc.com

Chris Hurn is President and Chief Executive Officer at Mercantile Commercial Capital, LLC, a leading provider of SBA 504 loans for business owners.

Chris actively participates in, among other things, the business development, underwriting and marketing functions of MCC. Previously, he worked as a senior management consultant, financier and executive with companies such as GE Capital, Heller Financial and NAI Realvest Partners. He has advised, financed and helped many small to mid-sized businesses throughout Florida and the Northeast for over ten years.

bmw rental chicago Westchester .. Lockport Chicago limo O’Hare
In The News:

Kurt “CyberGuy" Knutsson: FBI warns of "time-traveling" hackers.
Kurt “CyberGuy" Knutsson talks about a soft, vine-like robot called SPROUT that aids safe survivor rescues in collapsed buildings.
Health insurance giant Blue Shield of California confirmed it had been sharing private health data of 4.7 million users with Google for three years without even realizing it.
Delta and JetZero’s blended wing body aircraft marks a meaningful step toward a cleaner, quieter and more efficient future for air travel.
Recent reports show many common passwords can be cracked in literally seconds. Kurt the CyberGuy explains how to strengthen your passwords.
Stay up to date on the latest AI technology advancements and learn about the challenges and opportunities AI presents now and for the future.
Iron, a robot that stands 5 feet, 8 inches tall and weighs 154 pounds, combines advanced artificial intelligence with human-like movement and exceptional vision.
Hertz, the rental car giant, recently confirmed that customer information was exposed through a cyberattack on one of its software vendors.
There are a number of features with AirPods you may or may not know about to take your listening experience to the next level. Kurt the CyberGuy explains.
These 35 Chrome extensions have privacy and security concerns. Tech expert Kurt “CyberGuy" Knutsson says to delete them now.
Tech expert Kurt “CyberGuy" Knutsson says 329,000 mph fusion rocket promises to be fast, disruptive and enable deep-space missions.
Stay up to date on the latest AI technology advancements and learn about the challenges and opportunities AI presents now and for the future.
Tech expert Kurt “CyberGuy" Knutsson says a new autonomous AI is a game changer that also raises privacy risks. Is your data safe?
Tech expert Kurt “CyberGuy" Knutsson says robots and drones are revolutionizing fruit farming with faster picking and smarter handling.
Landmark Admin revises May 2024 cyberattack scope to show twice as many people were affected. Kurt “CyberGuy" Knutsson gives tips to help stay safe from an insurance data breach.
Tech expert Kurt “CyberGuy" Knutsson talks about how Yamaha’s hydrogen outboard motor could revolutionize boating with zero emissions.
Tech expert Kurt “CyberGuy" Knutsson reveals how to memorialize or remove a deceased loved one’s Facebook account and protect their digital legacy from misuse or scams.
Tech expert Kurt “CyberGuy" Knutsson says an Apple Watch saved psychiatrist Amanda Faulkner by detecting deadly leukemia early.
Scammers and fraudsters are increasingly targeting the most vulnerable, especially nursing homes and the personal data of their residents. Kurt the CyberGuy has safety tips.
Infected USB flash drives can spread malware among multiple organizations in ways that can easily bypass traditional security systems.
With a fully automated warehouse system and AI-powered robots, Ocado's Hive picks, packs and delivers grocery store orders in just a few minutes.
Stay up to date on the latest AI technology advancements and learn about the challenges and opportunities AI presents now and for the future.
Recycling robots are using artificial intelligence to learn how to sort recyclables by recognizing patterns in colors, textures, shapes and logos.
The Reachy 2 robot is designed to be friendly and approachable, inviting natural interaction and is perfect for research, education and experimenting with embodied AI.
Kurt "CyberGuy" Knutsson shares several easy ways to keep your credit cards safe from digital thieves while you're traveling this summer.

The Business Autopsy: A Fact Of Life

Last week we discussed the importance of performing an autopsy... Read More

Marketing a New or Small Business on a Budget

There are almost as many opinions and views on marketing... Read More

What is Rule 15c211 and Reverse Merger

Rule 15C211Under SEC Rule 15C211, a U.S. securities broker or... Read More

How to Protect Yourself & Your Business

As a business owner, you already know how important it... Read More

Cleaning Grain Silos, Towers, Containers, and Combines

If you run a pressure washing company in a rural... Read More

Pressure Washing Business Case Study, Tractor Cleaning

So often small service businesses fail to exploit niches, which... Read More

Small Business Franchise Opportunities

Many businesses offer small business franchise opportunities. There are many... Read More

Small Business Security No Passing Fad

How careful are you with the data you collect from... Read More

Bringing Home the Bacon

In general, all of us know how to accomplish the... Read More

Where Can People Find Information About Starting A Business?

Approximately 200,000 new businesses are started each year. More people... Read More

How to become a Career Coach for Profit

A career coach could be simply defined your job seeking... Read More

20 Great Ways to Market Your Business Locally

Whether your target audience is in your neighborhood or across... Read More

Bad Regulators Cost Small Businesses

When a regulator finds a target to go after to... Read More

Survival Tips For Your Small Business

No matter type of business you operate you've got to... Read More

When to Say NO!

When is it a good thing to say no to... Read More

Franchise Sales and Use of Online Franchise Directories

Franchising Directory Sites-Paid Advertising, Lead Generation for FranchisingFranchising Directory Sites... Read More

Reduce Stress, Increase Profits By Incorporating Strategic Systems In Your Small Business Success

Whether you are an Entrepreneur or Business Professional there are... Read More

Women and Small Business

In the book Women and Small Business author gives all... Read More

Combating Over Regulation of Small Business

Many small businesses do quite well due to the blood,... Read More

How to Start an Office Support Service

Office support services can range from basic data entry to... Read More

Contract Cleaners ? A Guide for Business Part 2

In the first part of this article I put forward... Read More

Knowledge is Power

Why does research and education play an important part of... Read More

The End -- Fireworks or Fizzle?

Seems as though there are a lot of business closings... Read More

Do You Really Need a Toll-Free Number for Your Business?

Do You Really Need a Toll-Free Number for Your Business?... Read More

Reaping the Rewards of Cost Cutting

In these days of insecurity and uncertain futures, the tendency... Read More

Belleville rental limo ..