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CORRECTED: Loans to help businesses expand

Finance: Local company certified by Small Business Association to give small-business owners real es

Posted: June 22, 2011 1:55 a.m.
Updated: June 22, 2011 1:55 a.m.
 

 


Editor's note: CORRECTS first name of Calvin Hedman.

A local Certified Development Company, SoCal CDC, has received certification approval from the Small Business Administration, enabling it to connect small business owners and banks to provide SBA 504 commercial real estate loans to small businesses.

Founded in 2010 by Silverio Robledo and Paola Macchiavello, the SoCal CDC is a not-for-profit organization focused on stimulating economic development by helping to meet the financing needs of small businesses in the region.

The SoCal CDC will help local business owners secure long-term, fixed-rate financing for major fixed assets.

Developed in partnership between a CDC, a lender and the
SBA, the SBA 504 loans may go toward financing real estate property or capital equipment purchases.

"We are extremely pleased that we have received our certification from the U.S. Small Business Administration and that together, we can provide more financial support to small business owners in the Southern California market," said Robledo.

Local program

"Ultimately, more visibility should lead to better access and utilization of key government programs for business in the valley," said Jonas Peterson, president and CEO of the Santa Clarita Valley Economic Development Corporation, of the new CDC.

Calvin Hedman, president of Hedman Partners, a certified public accounting firm in Valencia, agreed. Some of his firm's clients have easier access and better opportunities to get funding, but not all do, he said.

"We had clients trying to buy a building," Hedman said. "Having a resource like that to assist and give back to the community is great."

The SCVEDC said it plans to work with SoCal CDC to help increase awareness about the program and to connect clients with local banks.

"Our goal is to help market available financing options and connect business with local banks that can meet their needs," said Peterson.

Like other banks, the Bank of Santa Clarita has helped local business owners with SBA 504 loans but previously had to use CDCs located in Pasadena, Los Angeles or the San Fernando Valley, said Frank DiTomaso, chairman of the board for the Bank of Santa Clarita. There wasn't a local presence in this market.

DiTomaso will also serve on SoCal's board of directors.
"Having a local Certified Development Corporation adds further visibility to the Small Business Administration's 504 lending program," Peterson said.

Loan profile

Typically with SBA 504 loans, the lending bank provides 50 percent of the funding on a loan and the CDC underwrites 40 percent. The business owner must come up with 10 percent of the loan total.

"We are excited that the SoCal CDC will be locating in Santa Clarita and providing loans to our small businesses," said Jason Crawford, economic development and marketing manager for the city of Santa Clarita.
"The more opportunities for access to capital that our local businesses have, the better for their success and our community's economy," he said.

Eligibility

An entrepreneur operating a for-profit business and having a net worth of less than $8.5 million and profit after taxes of less than $3 million is eligible to apply under the SBA 504 loan program.

The business must occupy at least 51 percent of the building it purchases, or 60 percent of a newly constructed building, according to the National Association of Development Companies, or NADCO.

Recent changes in the SBA 504 loan program also now allow small business owners to obtain an SBA loan to refinance commercial mortgages.

"This is an opportune time for small business owners to obtain SBA financing for commercial real estate. Real estate prices are low, interest rates are low and the SBA 504 loan program offers up to 90 percent financing," said Robledo.

The loans can also be used for the purchase of equipment that has an economic life of at least 10 years. They cannot be used for working capital, or other purposes.

SCV benefit

The SBA 504 loan program serves as a long-term financing tool for economic development and job growth within a community.

Any profitability that the SoCal CDC generates through the loan program is money that goes back into back into our local economy, into economic development.

"Having a local CDC is very beneficial to the community from an employment standpoint," said DiTomaso. "It also supports business at local banks, business owners' get help re-financing their property or purchasing new property, and any additional money generated by the loans and growing businesses goes back into the community."

Business owners can acquire more information about the program and SoCal CDC at www.socalcdc.com.

 

A local Certified Development Company, SoCal CDC has received certification approval from the Small Business Administration, enabling it to connect small-business owners and banks to provide SBA 504 commercial real estate loans to small businesses.

Founded in 2010 by Silverio Robledo and Paola Macchiavello, the SoCal CDC is a not-for-profit organization focused on stimulating economic development by helping to meet the financing needs of small businesses in the region.

The SoCal CDC will help local business owners secure long-term, fixed-rate financing for major fixed assets.

Developed in partnership between a CDC, a lender and the SBA, the SBA 504 loans may go toward financing real estate property or capital equipment purchases.

“We are extremely pleased that we have received our certification from the U.S. Small Business Administration, and that together, we can provide more financial support to small business owners in the Southern California market,” said Robledo.

Local program
“Ultimately, more visibility should lead to better access and utilization of key government programs for business in the valley,” said Jonas Peterson, president and CEO of the Santa Clarita Valley Economic Development Corp, of the new CDC.

Carl Hedman, president of Hedman Partners, a certified public accounting firm in Valencia, agreed. Some of his firm’s clients have easier access and better opportunities to get funding, but not all do, he said.

“We had clients trying to buy a building,” Hedman said. “Having a resource like that to assist and give back to the community is great.”

The SCVEDC said it plans to work with SoCal CDC to help increase awareness about the program and to connect clients with local banks.

“Our goal is to help market available financing options and connect business with local banks that can meet their needs,” said Peterson.

Like other banks, the Bank of Santa Clarita has helped local business owners with SBA 504 loans but previously had to use CDCs located in Pasadena, Los Angeles or the San Fernando Valley, said Frank DiTomaso, chairman of the board for the Bank of Santa Clarita. There wasn’t a local presence in this market.

DiTomaso will also serve on SoCal’s board of directors.

“Having a local Certified Development Corporation adds further visibility to the Small Business Administration’s 504 lending program,” Peterson said.

Loan profile
Typically with SBA 504 loans, the lending bank provides 50 percent of the funding on a loan, and the CDC underwrites 40 percent. The business owner must come up with 10 percent of the loan total.

“We are excited that the SoCal CDC will be locating in Santa Clarita and providing loans to our small businesses,” said Jason Crawford, economic development and marketing manager for the city of Santa Clarita.

“The more opportunities for access to capital that our local businesses have, the better for their success and our community’s economy,” he said.

Eligibility
An entrepreneur operating a for-profit business and having a net worth of less than $8.5 million and profit after taxes of less than $3 million is eligible to apply under the SBA 504 loan program.

The business must occupy at least 51 percent of the building it purchases, or 60 percent of a newly constructed building, according to the National Association of Development Companies, or NADCO.

Recent changes in the SBA 504 loan program also now allow small-business owners to obtain an SBA loan to refinance commercial mortgages.

“This is an opportune time for small-business owners to obtain SBA financing for commercial real estate. Real estate prices are low, interest rates are low, and the SBA 504 loan program offers up to 90 percent financing,” Robledo said.

The loans can also be used for the purchase of equipment that has an economic life of at least 10 years. They cannot be used for working capital, or other purposes.

SCV benefit
The SBA 504 loan program serves as a long-term financing tool for economic development and job growth within a community.

Any profitability that the SoCal CDC generates through the loan program is money that goes back into back into our local economy, into economic development.

“Having a local CDC is very beneficial to the community from an employment standpoint,” said DiTomaso. “It also supports business at local banks, business owners’ get help refinancing their property or purchasing new property, and any additional money generated by the loans and growing businesses goes back into the community.”

Business owners can acquire more information about the program and SoCal CDC at www.socalcdc.com.

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