Orlando, FL, February 05, 2016 --(PR.com
)-- Mercantile Capital Corporation announced today that construction lending continues to drive its business and is a sign of overall small business economic health. A nationwide leading provider of U.S. Small Business Administration (SBA) 504 loans, the company has seen its construction loan volume reach 60 percent of its overall business for the past three years, going back to 2013.
Geof Longstaff, Chairman of Mercantile, says that trend is due in large part to the company’s in-house construction expertise. “Our executive team has long been involved with construction projects, from both the lender side of things as well as the borrower side,” said Longstaff. “Our hand-picked team is well-versed in small business construction, and we often take on projects that other lenders pass over simply because they’d rather not take on the risk.”
According to Shannon Marks, Mercantile’s President and Chief Operating Officer, the continued high level of construction financing done by Mercantile is indicative of continued improvement in the economy. “Small business owners don’t seek to build, renovate, and expand their commercial facilities unless they are reasonably confident in the economic conditions for the foreseeable future,” said Marks. “The fact that they’re in a position to grow and secure construction financing tells us that the economic outlook is getting brighter for small business owners nationwide.
In 2015 Mercantile Capital Corporation closed 54 loans across 14 states, funding projects worth $142.5 million in total project costs, and creating and retaining 785 jobs.
About the SBA 504 Loan Program
The SBA 504 loan program allows small business owners to financed 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 the purchase price, construction, renovations, equipment, soft costs, and closing costs. A typical 504 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 operates at zero-subsidy status within the SBA.
About Mercantile Capital Corporation
Mercantile Capital Corporation is a wholly-owned subsidiary of IBERIABANK (IBKC) and has been a primary source of SBA 504 loans and interim loans nationwide since 2002. As of 12/31/15, Mercantile has closed 611 loans to fund projects worth more than $1.69 billion in 40 states, Puerto Rico, and the District of Columbia.
For more information, contact Nikos Triadis at (407) 786-5040 or firstname.lastname@example.org.