San Diego, CA, April 21, 2012 --(PR.com
)-- California commercial real estate financing using a popular government-guaranteed loan program jumped 43 percent for the first quarter of 2012 compared to the same 3-month period a year ago, according to CDC Small Business Finance, one of the nation’s largest small business lenders.
CDC reported that Small Business Administration (SBA)-504 loan program approvals totaled $684 million for January-March 2012 compared to $478 million for the same period in 2011.
“The market continues to show improvement,” said Kurt Chilcott, president/CEO of CDC Small Business Finance. “Small businesses are taking advantage of lower property values and also refinancing currently owned properties.”
Nearly 3,000 new jobs are projected to be created in California as a result of SBA-504 financing approved in the last three months.
CDC Small Business Finance alone approved 97 SBA-504 loans in first quarter 2012, partnering with banks to provide $207 million in financing to small businesses.
In addition to the traditional 504 program, a new SBA refinance program is now available to small businesses facing balloon payments on commercial property mortgages. The current refinance rate through this program is 4.95%. This program expires in September.
The 504 loan program was created by the SBA for the specific purpose of financing long-term fixed assets such as commercial real estate and equipment with economic life of 10 years or greater.