SBA 504 Lending and Small Business News: June 15, 2016

June 16, 2016

Will refis revitalize the SBA 504 loan program? American Banker featured Liberty SBF in a story about the SBA 504 Refi Program. “We see 504 refinance as a huge opportunity for lenders like us,” said Liberty SBF’s CEO Alex Cohen. To accommodate an expected surge in 504 refinance activity, the program’s funding authority will double, to $15 billion.

Liberty SBF CEO Alex Cohen gave an exclusive interview to The Wall Street Journal last week announcing the company completed a B-round of funding. Liberty SBF has participated as a national wholesale lender in the SBA 504 market since 2011, providing much needed liquidity to small business borrowers at a time when many banks and lenders left the market or significantly reduced their participation in national 504 lending. Liberty SBF will fill a void in secondary market lending with its National First Lien SBA 504 Wholesale Program. “Congress recently made changes that later this month will allow the 504 program to be used for refinancing, as well as for property acquisition or development,” The Wall Street Journal reported. Cohen said that he believes the SBA 504 Refi Program will “supercharge volume in the coming years.”

Community banks have lead growth in CRE lending in Q1 according to the FDIC. GlobeSt.com reported that while commercial banks slightly increased their lending by 1.6%, community bank lending grew by 11.9%.

Inside Self Storage spoke to Shawn Hill, a principal with The BSC Group, about financing for self-storage. Options available for self-storage facility owners are CMBS and SBA loans among others. Hill suggested working with an expert financial advisor when weighing options. The interview took place at Inside Self-Storage World Expo in Las Vegas this spring. The group reported record-setting crowds at the event all seeking the most up-to-date information about the industry at educational workshops and individual sessions that included recommendations on financing.

8+1 (That’s 9) Things You Need To Know

  1. How to be more creative, from the man who invented the McGriddle
  2. SBA Final Rule: 504 and 7(a) Loan Programs Updates
  3. Minneapolis has become a hub for microbreweries
  4. Commercial real estate lender Liberty SBF scores Series B backing
  5. Are online reviews reliable? Researchers say no
  6. Beware of the VIP Syndrome in lending
  7. 2016 Small Business Person of the Year named for W. Texas region
  8. Survey: Industry comments on SBA oversight bill
  9. ABA, ICBA urge changes to Small Business Lending Oversight bill