NADCO Introduces Monthly Small Business Lending Report
WASHINGTON, June 13, 2013 /PRNewswire/ -- The National Association of Development Companies (NADCO) today launched a new, monthly Small Business Lending Report (SBLR), to be released the second Thursday of every month. This new report will offer monthly metrics on small business access to capital, job creation, interest rates and small business loan volume nationwide through the SBA 504 real estate and asset finance program.
Each month, NADCO will release its debenture rate (plus the twelve month average debenture rate), monthly pool size (loan volume in dollars) and number of borrowers. Combining historic data and assessed monthly, this will serve as a measurement of the health of small business lending -- a core contributor to the health of the U.S. economy.
"Access to capital is critical for small business to create and sustain jobs," said Beth Solomon, President and CEO of NADCO. "The Small Business Lending Report will offer valuable insight into how and to what degree small businesses are accessing finance and growth."
"Small businesses create seven out of 10 of net new jobs in our economy, so we need to ensure that access to capital is strong, as well as where the gaps are and how to address them," Solomon said.
There were 539 loans in June. This month's debenture rate is 2.45% (up from 2.07% in May which was the second lowest in the history of 504 lending) for June. Monthly loan issuance pool size was $335,837,000, which, while lower than recent months, still signals a healthy demand and approval for capital.
"As we continue to climb out of the recession, small business lending volume remains historically high. However, we are beginning to see some tightening in lending as rates begin to rise. As investors watch economic trends very closely, NADCO's member certified development companies will continue working to give small businesses the access to capital they need to invest for growth and job creation," Solomon concluded.
Over the past 12 months there have been 7,692 loans totaling $5.2 billion at an average debenture rate of 2.19%
By tracking and sharing this monthly report, NADCO will provide unique insight into the health of small businesses and their hiring. In addition, the SBA 504 loan requires every $65,000 of finance to create or maintain one job. Businesses securing 504 loans create 25% more jobs than non-504 businesses, according to the U.S. Census Bureau.
ABOUT THE NADCO SMALL BUSINESS LENDING REPORT (SBLR)
This is a measure that tracks, on a monthly basis, the loan volume for owner-occupied real estate and asset financing administered through the Small Business Administration's Certified Development Company (CDC) lending initiative (also known as the 504).
ABOUT THE SBA's 504 LOAN INITIATIVE
The 504 loan initiative is a self-funded long-term financing tool at no cost to taxpayers providing small businesses with long-term, fixed-rate loans with down payments as low as 10%. Certified Development Companies (CDC) work with the SBA and private sector lenders to provide financing to small businesses under the 504 loan program.
The National Association of Development Companies (NADCO) is the trade association of Certified Development Companies (CDCs) - nonprofit companies that have been certified by the Small Business Administration (SBA) to provide financing for small businesses under the SBA 504 Program. NADCO represents nearly 270 CDCs, serving all 50 states. In 2012, the industry provided $6 billion to nearly 10,000 U.S. small businesses.
SOURCE National Association of Development Companies (NADCO)