SBA 504 Lending and Small Business News: March 31, 2016March 31, 2016
Small businesses are starting the year on an optimistic note. Confidence about future growth is at a five-year high, according to recent results from Dun & Bradstreet and Pepperdine University Graziadio School of Business and Management Private Capital Access Index (PCA). The PCA shows 86% of small business owners reported feeling “more optimistic” or “somewhat more optimistic” about their own future business growth prospects. In addition, 62% of owners of small businesses are planning raises for employees in the next 12 months, and 80 percent of mid-sized businesses expect to increase their employees’ pay – a three-year percentage high for both business segments. Thirty-seven percent of business owners reported plans to seek financing in the next six months, compared to 30% in Q1 2015, representing a year-over-year increase of 23.3%.
Regional Development Funding Corporation (RDFC) became the newest Certified Development Company in West Virginia. RDFC can provide small business loans through the SBA 504 program joining Regional Economic Development Partnership and Business Finance Group, Inc. “RDFC joining our state as a 504 lender is a great benefit to small businesses seeking capital,” said Small Business Administration West Virginia District Director, Karen Friel. “Last fiscal year there were three 504 loans made in West Virginia for more than $2.2 million. We anticipate adding another Certified Development Company will complement the work already being done and we’ll be able to increase that number.”
The Feds see unstable global conditions and volatility in the market as reasons to hold off on raising rates. The Fed recognized that inflation is in check and the U.S. economy is improving but it’s still not ready to commit to a rate hike. Experts are saying the next time the Feds will raise rates will be later in 2016. Low rates are good for small business owner looking for affordable financing with business loans or lines of credit.
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