SBA 504 Lending and Small Business News: September 28, 2015

Senators Jeanne Shaheen (D-N.H.) and Johnny Isakson (R-Ga.) introduced the CREED Act of 2015 (S. 966) into the Senate, a bill that would reinstate the SBA 504 Loan Refinancing Program if passed into law. The ABA thanked the Senators in a statement saying, “In a tough economic climate, meeting long-term capital needs for small businesses could be the difference between expanding and shrinking a business. This important program will help more small businesses with long-term financing that will in turn help them expand and create jobs in the future.” The bill seeks to reinstate the authority for SBA low-interest refinancing of small business debt not involving business expansion under the SBA’s local development business loan program. It repeals a provision of the Small Business Jobs Act of 2010 that terminated that authority as of September 27, 2012. The CREED Act of 2015 was introduced in April and placed on the legislative calendar in June.

SBA Chief Maria Contreras-Sweet kicked off the SBA’s “Small Business, Big Think” series at Rutgers University in New Jersey last week with a message about the state of small business ownership. The good news, she said was that the economy added jobs for 66 months straight and the unemployment rate is at a 7-year low standing at 5.1%. “But our youth unemployment rate is more than twice that and our African American unemployment rate is still at 9.1%,” she said. Contreras-Sweet also noted that African-American owned businesses averaged $72,000 in annual receipts compared to $150,000 for Hispanics, $400,000 for Asian Americans, and $600,000 for whites. “This opportunity gap limits the growth of our small business community and the growth of our country. The only way we can reach our full economic potential is by making sure that everyone has access to a seat at the table.”

NADCO will honor a third party lender that has fostered economic development in local communities, in partnership with a Certified Development Company with its first ever Extraordinary Lender Partner in Economic Development Award. The award will be presented to the winner at NADCO’s 2015 Annual Meeting in New Orleans being held Nov. 11-13. According to the website, qualified nominees include all third party lenders that partner with CDCs for the betterment of local economies. Nominees might include lenders that assist CDCs in establishing their Community Advantage program, either through equity contributions or lines of credit, or lenders that seed local economic development programs in partnership with a CDC. Submissions for nominees should be received by the organization by Thursday, Oct 15. Head over to NADCO’s website for more information.

8+1 (That’s 9) Stories To Read Today About Small Business and SBA 504 Lending:

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