Mercantile Capital Corporation, which ranks as one of the nation’s leading providers of U.S. Small Business Association (SBA) 504 loans to business owners who want to acquire or develop their own facilities, reported it closed seven commercial loans in October that financed projects totaling $28.2 million in total project costs.
Christopher G. Hurn, chief executive officer of Mercantile Capital Corporation, said the loans helped finance projects in California and Illinois as well as Florida.
The largest single loan helped finance a TownePlace by Marriott hotel in Sacramento, Calif. valued at $9.5 million.
Hurn said Mercantile Capital’s loan volume for October is up 200 percent over last October.
Mercantile Capital expects to end this year with a total of 95 loans to finance projects valued at more than $420 million, up from 174 million in 2011.
“We are seeing record growth this year because the regular credit markets are basically frozen,” Hurn said.
“Banks are not loaning money in great enough quantity to meet demand and we are a terrific and available alternative,” he said.