Orlando, FL, February 05, 2015 --(PR.com
)-- Mercantile Capital Corporation announced today its goal of funding small business commercial real estate loans worth two billion dollars by the end of 2016. The company, which specializes in Small Business Administration (SBA) 504 loans, has closed a total of 552 loans worth 1.5 billion in total project costs through 2014.
Mercantile needs to close loans worth 438 million in the next two years to reach its goal. Since 2010, the company's average project size is 3.88 million dollars and it has closed an average of 58 loans per year. Geof Longstaff, Chairman and CEO of Mercantile, is optimistic. "We're coming off a great 2014 and we're hopeful that our pending merger with IBERIABANK will give us the ability to help more small business owners nationwide," said Longstaff. "Getting to two billion won't be easy by any stretch, but we think it's possible and we're not afraid to go out and try for it."
An important feature of the SBA 504 loan program is its job creation/retention mandate. If Mercantile reaches its goal by the end of 2016, it will have helped create and retain about 2,300 jobs, per SBA requirements. "This goal isn't merely about growing our company or corporate pride," said Shannon Marks, Mercantile's President and Chief Operating Officer. "We know that funding more SBA 504 loans will help small businesses grow and create jobs, which will benefit communities all around the country and our economy as a whole."
Details and updates on Mercantile’s progress can be found at www.504experts.com/2billion.
About the SBA 504 Loan Program
The SBA 504 loan program allows small business owners to finance fixed assets with long-term, below-market, fixed interest rates. These loans are designed to finance the total cost of a project, which can include purchase price, construction/renovations, equipment, soft costs, and closing costs. A typical 504 loan project requires only 10 percent equity from the borrower, with the remaining amount split between a first mortgage provided by a commercial lender and a second mortgage provided by a Certified Development Company (CDC). The program is self-funded and historically operated at a zero-subsidy status within the SBA.
About Mercantile Capital Corporation
Founded in 2002, Mercantile has been a primary source of SBA 504 loans and interim loans nationwide. As of 12/31/14, Mercantile has closed 552 loans to fund projects worth more than $1.56 billion in 40 states, Puerto Rico, and the District of Columbia. It was announced in late 2014 that IBERIABANK plans to acquire Mercantile and its parent company, Old Florida Bank, in early 2015.