ALTAMONTE SPRINGS, Fla. – The U.S. Small Business Administration’s helpful decision recently to extend its SBA-504 lending program —which helps small business owners who want to acquire or develop their own facilities—doesn’t go far enough, says Chris Hurn, chief executive officer of Mercantile Capital Corporation in Altamonte Springs.
Hurn’s analysis, which he published at www.504Experts.com, is getting some major media traction, including a lengthy interview in the New York Times.
The most recent SBA initiative—announced last February and put into effect recently—extends the SBA’s 504 lending program to include refinancing.
Hurn gives the SBA credit for extending the 504 loan program. But the SBA initiative requires businesses to use new funds for expansion purposes only.
“That’s the kink,” Hurn said. “How many small businesses are in an expansion mode in this economy?” he asked.
Billions of dollars worth of potential small business loans go unfunded every year, Hurn said.
“That money needs to be in the marketplace to have any positive effect on small business growth. The $255 million,” Hurn said.
The numbers back Hurn’s proposition: SBA 504 loans are down 41.5 percent this fiscal year and the total dollar amount funded has dropped 42.5 percent from last year.
“The SBA is moving in the right direction, but the positive impact on small business growth in the U.S. would be explosive if SBA would lift its restriction to small business expansion and open the door to true refinancing,” Hurn added.
For more information, contact:
Chris Hurn, Chief Executive Officer Mercantile Capital Corporation, 407-786-5040
Shannon Marks, President, Mercantile Capital Corporation, 407-786-5040
Larry Vershel, Larry Vershel Communications 407-644-4142