higher interest rates aheadWith the Federal Reserve signaling a long-anticipated interest rate increase in 2015, small business owners would be wise to take advantage of existing low rates in Small Business Administration (SBA) loan programs.

The 20-year fixed rate for an SBA-504 loan, which allows small business owners to buy or construct their own building or purchase large equipment, has averaged 4.8 percent for the last six months.  You can download information on how interest rates relate to small business growth – click HERE.

“For small business entrepreneurs who’ve been thinking about expanding, now is the time to invest in their companies before the interest rate start to climb,” said Kurt Chilcott, president of CDC Small Business Finance, a nonprofit that leads the nation in SBA-504 loans.

Banks and other lending experts have speculated that the federal government could start to bump up interest rates as early as this summer.

SBA-504 financing appeals to small business owners who are weary of paying rent and want to build equity for themselves.  The program allows entrepreneurs to access low-fixed-rate, 20-year financing upwards of $20 million with a minimal down-payment (10%).

“The SBA-504 loan is a great tool to help new small businesses grow, but it’s often not mentioned by financial advisors,“ said Chilcott.

The most significant advantages of SBA 504 loans include:
• Preserving cash to meet working capital needs
• Tax savings
• No additional collateral required
• No balloon payments

To qualify for an SBA 504 loan, businesses must be:
• Owner-operated
• For profit
• Organized as a sole proprietorship, corporation, partnership or LLC
• Have a business net-worth below $15 million and a net-profit after taxes below $5 million within the last two operating years

For a history of SBA-504 rates, click HERE.

Posted on 1/08/2015

Number 1CDC Small Business Finance was ranked the #1 504 lender in SBA’s Los Angeles District for the ninth fiscal year in a row. The list showing CDC at the top was published Dec. 8 in the Los Angeles Business Journal.

“Thanks to our entire ‘Team L.A,’ as everyone involved is responsible for making CDC #1 in L.A. for nine years running!” said L.A. loan officer Dean Aloe.

CDC’s Los Angeles team approved twice as many 504 loans (100) as their closest competitor, directly providing $97 million in financing to small businesses and leveraging $126 million in additional funding from bank partners as part of the SBA-504 transactions.

CDC’s Team L.A. includes Dean Aloe, Armen Madatyan, Kristen Bailey, Sarah Dethloff and Kisha Gant.

Posted on 12/09/2014


Tis the season for an overabundance of deals, specials and sales. Our holiday shopping season seems to start earlier every year. With behemoth events like Black Friday keeping everyone’s fingertips and eyeballs searching for the best deal, it’s easy to get lost in it all.

Each year, we try to remind people that “shopping small” is really the way to go. Your money is being spent anyway; why not on a local business? Your shopping at small businesses rather than corporate chains will directly impact your neighborhood and economy, including jobs.“Since the end of the recession (from mid-2009 to mid-2013), small firms accounted for 60 percent of the net new jobs.” With an economy that is still feeling the pain of the recession, that is very important. [source]

I can hear you saying: “But, the deals! They’re too hard to pass up!” The reality is that those deals are often not what they seem. In fact, based on the data, prices are shown to rise prior to Black Friday so that the sales seem to be a greater value. [source] And, look at what you are buying. Everyone else is buying it, too. Wouldn’t you rather give a gift of authenticity and uniqueness from your neighborhood shop? There’s nothing worse than showing up to the party with the same shirt as that other guy. Ugh!

It’s hard to not get sucked into the madness of shopping. Alternatively, join us this holiday season in being grateful for all that is small, especially small businesses. Help them thrive; shop small. You neighborhood’s future depends on it.

Small Business Saturday is November 29th, the Saturday after Thanksgiving. Find more info about what your neighborhood is doing by clicking here.

Posted on 11/25/2014