SBA Administrator Keynotes at NADCO Conference
05 November 2008
The participation of SBA Acting Administrator Sandy K. Baruah at the NADCO Regional Conference in Midway, Utah, October 21, demonstrates the importance the U.S. Small Business Administration places on SBA 504 Loan Program as the lending program to promote economic development and job creation during the current economic downturn.
Administrator Baruah began his remarks by saying that he appreciates the role that NADCO plays as the voice of the nation's CDCs and NADCO's role in advancing SBA's mission. He pointed out that each CDC's mission of fostering economic development is of particular importance at this time for our country. NADCO members represent the nation's Certified Development Companies (CDCs) who partner with the Small Business Administration to provide SBA 504 loans throughout the country.
In fact, the SBA Loan Program exists for the express purpose of fostering economic development. When small business owners decide to buy, build or renovate real estate, they are putting down roots in their communities and taking a big step toward ensuring the continued growth and success of their businesses. SBA 504 loans offer most types of small businesses affordable financing for real estate, machinery and equipment purchases. The economic development component of this loan program is that the amount of financing available is tied to job creation. Small business expansion also means increased collateral business activity and increased revenues from new payroll, business and property taxes.
While much has been made of the decline in SBA lending over the past 12 months, when you consider that for the preceding three years the SBA 504 Loan Program experienced record-breaking loan volume, it is not surprising that these record levels could not be sustained indefinitely. More importantly, the current credit crisis has not frozen the SBA 504 loan program and loans are still available. NADCO President, Christopher Crawford, is assuring small business entrepreneurs that SBA 504 loans are still available for qualified small businesses during these turbulent economic times. CDCs, our banking partners and the SBA are doing business as usual and will continue to do so for the long haul. SBA 504 loans continue to provide a steady source of long term capital at a fixed rate - often below market - and frequently with only 10% down by the small business owner helping to conserve needed cash for operating expenses."
Certified Development Companies are located in every state, as well as in Puerto Rico. These CDCs stand ready to assist in keeping America's economy going - especially during economic downturns. A local CDC may be found through www.nadco.org, or by talking to your local commercial bank. Be sure to ask for information on the SBA 504 Loan Program.
About the National Association of Development Companies
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. For more information, please call 703-748-2575.
