Small businesses throughout San Diego will benefit from a $15,000 grant presented this week by Bank of America to the San Diego Region Small Business Development Center.
The grant supports business advising and community loan programs. Bank of America is a long-time supporter of small business financing programs and workforce development.
The grant was formally presented by Rick Benito, senior vice president and SBA lending executive for Bank of America.
The Center is operated by CDC Small Business Finance, a not-for-profit financing company that provided over $700 million in capital to small businesses in 2015 alone and created and preserved more than 7,100 jobs.
“We truly understand the daily needs and challenges of small businesses because we’re a small business, too,” said Robert Villarreal, executive vice president of CDC. “These funds will be used to educate and advise various small business owners so they get better at managing and growing their companies and creating jobs.”
Opportunity to lighten debt burden for thousands of small business owners
Small business owners feeling the pressure of commercial mortgage debt and facing the specter of rising interest rates can get relief starting June 24 when a new refinance program is launched by the Small Business Administration (SBA) and provided by CDC Small Business Finance.
“This is a game changer for small businesses that need financial breathing room to grow and create new jobs,” said Kurt Chilcott, president of CDC Small Business Finance, a leading non-for-profit SBA lender offering the new refinance loans.
Under the new refinance program, small businesses can take advantage of lower rates, fixed for 20 years, to lighten their monthly debt payments, improve cash flow and stabilize operations. The program allows for refinancing commercial real estate debt as well as other business debt and expenses. The current SBA-504 loan rate is 4.31%
Between $100 billion and $200 billion in commercial real estate debt is projected to mature nationwide in 2016 and 2017. Much of this debt is owed by small businesses still struggling in a lukewarm economy.
The new SBA-504 Refinance program reprises a successful pilot initiative that in 2011-2012 helped more than 2,700 small businesses refinance nearly $7 billion in high-interest debt.
If interest rates begin to rise, many small businesses will be challenged to qualify for a conventionalrefinance loan versus an SBA loan. With the new SBA-504 Refinance loan, a bank and SBA-certified lending partner will provide 90% financing, leaving a 10% down-payment by the small business owner.
Small business owners can find out about pre-qualifying for a new Refi loan by contacting a CDC Small Business Finance loan expert in California or Arizona.
Many small business owners in California are thriving after tapping into low-interest Small Business Administration (SBA) financing programs.
In celebration of National Small Business Week (May 1-7), here’s a small business entrepreneur who took advantage of an SBA lending program to grow his company.
David Baron was burned out. He’d spent 20 years as a lobbyist in California and was hungry for a more fulfilling vocation. As serendipity would have it, Baron and his wife, Risa, were frequent patrons of a neighborhood farmer’s market where they discovered a small business called Jackie’s Jams. They fell in love with the multi-flavored products, as did their peanut-butter-sandwich-loving son, and offered to buy the company. The owner (Jackie, naturally) said yes.
Needing cash to buy Jackie’s Jams, the Baron’s turned to CDC Small Business Finance, which provided them a $40,000 SBA Microloan in 2011. “We took Jackie’s delicious products and overlaid our vision for something bigger,” said David Baron. Their jams are now in every Sprouts market in California, 27 Whole Foods stores and several high-end hotels.
The Barons’ microloan is nearly paid off now and the couple is thinking about leveraging another SBA loan to further expand and grow the company.