Small business owners in California and Arizona are turning increasingly to SBA-504 financing to fund the purchase of their own building, according to data released by CDC Small Business Finance, a nonprofit lender.
According to CDC, in the last six months, 518 small business owners in California have been approved by the SBA to receive $1.5 billion in financing to buy commercial real estate to help them expand their companies and create jobs. For the same six-month period in 2014, small business entrepreneurs secured $1 billion in SBA-504 financing. The average SBA-504 loan in 2015 thus far is $2.8 million versus $1.9 million in 2014.
In Arizona, small businesses committed to $88 million in SBA-504 financing to fund building purchases, compared to $68 million for the same six-month period a year ago. The average SBA-504 loan in 2015 is $2.3 million compared to $1.7 million last year.
“The improving economy is motivating small business entrepreneurs to commit to building equity for themselves by buying their own building and putting rent payments in their past.,” said Kurt Chilcott, President/CEO or CDC Small Business Finance.
“The other take-away from this data is that commercial/industrial property values, which plummeted during the recession of 2009, are rising. Combined with sustained low interest rates, small business owners are motivated to take the purchase plunge,” said Chilcott.
More than 10,000 small business entrepreneurs have expanded, profited and created new jobs with a financing boost from CDC Small Business Finance.
Celebrating 37 years in business this month, the non-profit CDC announced that small businesses throughout California, Arizona and Nevada had benefitted from $12.9 billion in SBA loans and other capital. CDC released its Making A Difference Report that contained the following other measurements of CDC’s impact on small businesses and the communities it serves:
- $12.9 billion provided via SBA-504 loans, which small business owners used to buy their own commercial/industrial building and large equipment.
- $150 million provided via SBA-7a (Community Advantage) loans and other general business financing.
- 167,0000 jobs created and preserved
- 34% of all loans went to women, minorities and military veteran entrepreneurs
- $3.6 million in contributions to community organizations
- $145,000 given in scholarships to women and minority college students transitioning from a community college to a 4-year university.
Come March 8 – International Women’s Day – female entrepreneurs will take a well-earned bow for achievements they’ve made in business. A few factoids* provide some perspective:
- More than 9 million firms in the U.S. are owned by women, employing nearly 8 million people, and generating $1.4 trillion in sales as of 2014.
- Women-owned businesses account for 30% of all privately held firms and contribute 14% of employment. These companies employ 1.4 million people and generate $226 billion in revenues annually.
- 2.9 million firms are majority-owned by women of color in the U.S.
* Factoids courtesy of National Association of Women Business Owners
CDC Small Business Finance has approved $1.5 billion in total financing for women-owned companies, including $61 million in 2014 that women entrepreneurs used to buy their own commercial/industrial building.