Small Business Lending Up at Community Banks [News] | SBA 504 Rates and News From Liberty SBF

April 6, 2015

CRE loans at all sized banks in the U.S. were up by 9% last quarter from the year before but small banks have been the stars lending at double-digit rates over the past year, according to an article on Seeking Alpha. As a matter of fact the writer says that most business in CRE lending has been through smaller U.S. banks throughout the recovery and he thinks it will probably continue. Overall Commercial and Industrial lensing at smaller banks also outpaced larger banks. Over the past quarter smaller banks increased lending by about 13% while the 25 largest U.S. banks increased lending in this area by 10%.

Smaller banks fuel growth at small businesses because unlike corporations that have other options when raising capital (stock sales, bond issuances), small businesses turn to local banks for help. But a Federal Reserve report shows that source of cash is drying up as the number of community banks decreased 41% between 2007 and 2013, according to an article in Entrepreneur magazine. New bank formation has also stalled and the blame is place on the higher regulation and costs associated with the Dodd-Frank Act. Scott Shane, a professor at Case Western Reserve University argues in the article that community banks should be exempt from theses regulations. With their knowledge of local marketplaces, community banks are better prepared to evaluate factors that do not show up just looking at credit and cash flow when making decisions to lend to a local business.

Cash flow is the number one concern of small business owners, according to an article in Coleman Report. Commenting on another article that outlined what kept business owners up at night Bob Coleman wrote that the list was filled with annoyances more than concerns. His list included three items: Cash Flow, The Economy and Access to Capital.

TMC Financing, a West-coast based CDC, helped an artist purchase his own studio recently. Master potter, Adam Silverman financed the purchase of a 4,350-square-foot studio and showroom in Glendale, CA with an SBA 504 loan. The total project cost of just under $965,000 includes the purchase and subsequent improvements. Silverman is known for his textured pots, some of which take months to make. He had worked under another studio for the last five years and wanted to re-establish himself in his own studio.

TMC Financing was also named among the Best Places to Work in 2015 in the Bay Area by the San Francisco Business Times and the Silicon Valley Business Journal according to a statement. The rankings recognize outstanding companies whose employees rate them as having the best workplace cultures in the Bay Area. TMC Financing was founded in 1981 and is the largest provider of SBA 504 real estate loans funding projects worth more than $8 billion across California and Nevada for more than 4,700 businesses creating an estimated 35,000 jobs.

Dakota Business Finance, a South Dakota CDC, is co-sponsoring a market for locally made items on May 1 called Sioux Falls Made. The Sioux Falls Made Market will run from 11 a.m. to 7:30 p.m. in a repurposed garage at Argus Leader Media, located at 10th Street and Minnesota Avenue. The event is touted as a one-of-a-kind market for locally handmade and homegrown items featuring the work of 40 Sioux Falls-area vendors. Find out more here.

Meet up with Liberty SBF to learn all about our SBA 504 Loan and pick up a copy of our white paper to see why this is the best program for small businesses. We will be at the following upcoming conferences:

Trigild Spring Conference, April 22-23, Dallas, TX

SBA Lending Technical Conference, May 5-7, San Antonio, TX

NADCO Spring Summit, May 10-13, 2015, Washington DC

8 Plus 1 Things You Need To Know Right Now (That’s 9):

• Will the SBA’s flagship program be a victim of its own success?

• 8 small business tax preparation mistakes to avoid

• Small business: Backbone of the economy

• Coleman Report interviews Kent Hoover of The Business Journals

• What small businesses should ask about their tax preparation software

• 10 quick tips for small business growth

• SBA names Huntington Bank top Michigan lender for 6th year

• Media training tips for small businesses

• At the crossroads of health care and innovation

Click here or current SBA 504 rates.