March Small Business Lending Report (SBLR) Shows Spring Thaw

Washington, DC - The National Association of Development Companies (NADCO) Small Business Lending Report (SBLR) showed an increase in monthly loan volume for small business owners seeking commercial real estate and equipment financing in communities across the country, reflecting a spring thaw beginning to foster capital flow to small businesses in commercial real estate and equipment financing.

In March 2014, there were a total of 515 20-year loans funded - just slightly under the 12-month average of 527 loans – increasing by 133 loans and $109,814,000, or 30%, over February, and compared to a similarly weak 444 loans and $283,660,000 in January. The 20-year loan pool size was $361,134,000 – above the 12-month average $344,533,769.

“March is coming in like a lion in terms of increased commercial real estate and equipment loan volume to Main Street,” said Beth Solomon, President & CEO of NADCO. “The new Administrator of the Small Business Administration, Maria Contreras-Sweet, and the new Chair of the Senate Small Business & Entrepreneurship Committee, Sen. Maria Cantwell (D-WA), can further accelerate this trend by leading the way to reinstate small business debt refinancing – also called the CREED Act. We are excited for their leadership to help small businesses fully recover from the recession and create the jobs America needs.” This month's effective interest rate (the all-in cost to a borrower) fell to 5.29% from 5.31% last month, in contrast to last March’s Effective Rate of 4.3%, a historically low level. Consistently low rates combined with a down payment as low as 10% have led borrowers to dub the Real Estate Advantage (REAL504) “the best kept secret in small business finance,” and have allowed household brands like Chobani Yogurt and Fat Tire Beer to get their start before flourishing into global operations.

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