FAIRFAX, Va., March 6, 2012 /PRNewswire/ -- Business Finance Group (BFG), one of the nation's 270 Certified Development Companies (CDCs) and the number one lender in the mid-Atlantic area, today announced that it was the top lender of Small Business Administration 504 loans among CDCs in the mid-Atlantic during 2011 and in the top 5% in the country by loan volume.
SBA 504 loans are designed to help small business owners get long-term financing for capital assets such as the purchase of real estate and equipment. In most cases, a 504 project includes three funding sources: a first mortgage from a private-second lender that covers 50 percent of the cost, the SBA-504 second mortgage from a CDC that covers 40 percent and 10 percent equity from the borrower. More than 130,000 businesses have obtained SBA 504 loans over the past 25 years, and $50 billion in debentures have been funded, leading to more than $100 billion in small business financing projects.
Sally B. Robertson, President of BFG, said, "Our loan volume was up by more than 10% last year. While our total loan volume was $116 Million, we leveraged that with bank financing to provide $290 million in projects financed for 179 businesses that expect to add nearly 1,800 employees as result of their growth."
Companies that have strictly commercial loans (no SBA funds involved) may, until late September, refinance their loans using the SBA 504. SBA estimates that as many as 8,000 businesses may participate in this refinancing program during the current fiscal year, which will provide up to $7.5 billion in SBA-guaranteed financing leading to total project financing of almost $17 billion. Recent interest rates have been as low as 4.91% for 20-year SBA 504 refinancing loans.
Business Finance Group (BFG) is one of the nation's 270 Certified Development Companies (CDCs). It is a member of The National Association of Development Companies (NADCO), the trade association for the nation's CDCs. For more information on obtaining SBA 504 funding, or using a 504 for refinancing a commercial business loan, visit http://businessfinancegroup.org or call 800-305-0504.
SOURCE Business Finance Group