Capital CDC News & Announcements

Welcome to the Capital CDC News Room, a media resource where you can access information about Capital CDC, the SBA 504 Loan Program, recent press releases, and news articles.

Eastside Inn Groundbreaking

February 2011

Nestled amongst the up-and-coming businesses on East Cesar Chavez, is the cozy, yet redesigned Eastside Inn.  The charm of this 1925 Craftsman home has been preserved in its renovation into a 7-room inn.  Owners and parents of this personalized project, Kathy Setzer and George Reynolds, have made it their goal to transform this small house into much needed lodging on the eastside of I-35, serving the local community of residents and businesses.  From the exterior elevation to the original long-leaf pine floors, Kathy and George have diligently worked with contractors and architects to maintain the character of this lovely inn while transforming it into the soon-to-be quaint 7-room inn located at 1609 E. Cesar Chavez.

The crew renovating and building onto the inn broke ground in January of 2011, and hope to open the doors for business in the fall of this year.  During the initial construction, lending partners Capital CDC and University Federal Credit Union teamed up to enjoy a groundbreaking ceremony with the group involved in making this dream a reality.  The wonderful team at University Federal Credit Union, led by Mike Gandy and Alexis Michael, partnered with Capital CDC’s Kathy Kyrish to provide SBA 504 financing to the Eastside Inn, and both partners are delighted to see this business grow. 

Key Program Features

·         SBA will launch this temporary program on Feb. 17, 2011 and will begin accepting loan applications on Feb. 28, 2011.  The program will end on September 27, 2012.

·         Borrowers can finance up to 90 percent of the current appraised property value, or 100 percent of the outstanding principal, whichever is lower, plus 504 eligible refinancing costs.

·         SBA will initially open the program only to businesses with immediate need.  Priority will be on those businesses potentially at risk because they face loan maturity or balloon payments before Dec. 31, 2012.  SBA will later revisit the program parameters, and may open the program to businesses with later balloon payments or that can demonstrate need in other ways.

·         The program is structured like SBA’s traditional 504 loan program: borrowers will work with third-party lending institutions and SBA-approved Certified Development Companies (CDCs), typically private, non-profit organizations to obtain financing, in a traditional 10%/50%/40% split.

·         SBA estimates that as many as 20,000 businesses may ultimately participate in this program, which will provide up to $15 billion in SBA-guaranteed financing leading to total project financing of over $30 billion.

·         The program, which is completely separate from SBA’s traditional 504 program, is zero-subsidy, requiring no cost to the taxpayer: It will be funded entirely through additional fees assessed for refinancing projects.

Federal Register for SBA Refi Regulations

Groundbreaking for Capital Gymnastics

February 2011

Capital CDC with our lending partner, University Federal Credit Union, attended a groundbreaking ceremony on Friday, January 28, 2011 for the partnership’s newest building, Capital Gymnastics, Inc.   The location of the new gymnastics facility will be on Kingston Lacy Blvd in Pflugerville, Texas.  Accompanying Kathy Kyrish of Capital CDC and Alexis Michael and Mike Gandy of University Federal Credit Union, were the owners of Capital Gymnastics, James and Cheryl Jarrett, as well as a team of talented gymnasts and coaches. 

Capital Gymnastics was founded by the Jarretts in 1983.  As of recently, the husband and wife team owned three properties in the Austin area, but will be condensing two of the current locations into the new, state-of-the-art gym in Pflugerville.  The current Cedar Park location has been in operation over three years, and will remain open.   

Capital Gymnastics is consistently ranked among the top 10 gymnastics training programs in the United States, and is recognized by USA Gymnastics as a National Team Training Center, having trained nearly 100 gymnasts who have gone on to join the USA National Gymnastics Team and participate in events across the globe.  This is not hard to believe after looking into the backgrounds of both James and Cheryl Jarrett. 

After earning a Bachelor of Science in Physical Education at the University of Texas-Pam American, James followed his talent in gymnastics.  He has certifications from the Gymnastics Association of Texas and USA Gymnastics.  James has also served as the USA Gymnastics Elite Nation Coach and Director, each for a number of years.  In addition to his gymnastics training, James has assisted with military training at both the Randolph Air Force Base and the Brooks Army Base in San Antonio, Texas.  Topping this already impressive resume, James has personally coached more than 70 top USA athletes, and served as Head Coach for the USA Gymnastics team at the French Cup, the Italy Cup, and the Japan International Invitational.

Cheryl Jarrett’s resume is in no way eclipsed by her husband’s.  After earning a dual degree in Education and Dance from the University of Texas, Cheryl received certification by the Gymnastics Association of Texas and USA Gymnastics.  She is currently developing the USA Gymnastics Professional Coaches’ Certification Program and the 2013 USAG Compulsory Routines.  Cheryl has also served as the President of the Gymnastics Association of Texas; the USA Gymnastics Region 3 Junior Olympic Chairman; as a staff member of the Federation of International Gymnastics at the 1996 Olympic Games; as a member of the USA Delegation at the 1999 World Gymstrada in Sweden; and as the co-creator and choreographer of the USA Gymnastics Junior Olympic Committee’s beam and floor events from 1997-2005.  To top it all off, Cheryl has coached numerous USA team athletes over the years, including both Gold and Silver Medalists.

This couple makes a talented and experienced team, leading their 65 employees and hundreds of gymnasts to greatness and success.  Together, they have created programs tailored to specific age groups and areas of physical fitness.  They teach gymnastics, cheerleading, dance, as well as general physical fitness techniques.  The gym offers classes to children as young as 18 months through older teenagers.  They even offer private lessons or small group instruction for adults in the areas of low-impact gymnastics and dance.  In addition to their classes and private lessons, Capital Gymnastics offers Mom’s Day out programs, camps, retreats, tournaments and competitions, and Saturday birthday parties. 

The top-notch training and experience that the Jarretts and their staff provide their clients puts their success at Capital Gymnastics on the map!  Most programs are pre-booked at or near capacity up to a year in advance! For more information about Capital Gymnastics, please visit their website at www.capgym.com.

Small Businesses get Big Support

January 2011

Resources:  Rob Mandelbaum of the NY Times online

Capital CDC Honors Long-term Employees

January 2011

Capital CDC would like to recognize a few individuals that have reached milestones in their career with the company.   We are proud to have a dedicated group of individuals that are committed to providing great service through our 504 program.  Congratulations to the following people on their milestones at Capital CDC!

Five or More Years:

Kathy Kyrish, Austin Regional Manager

Jen Glatz, Marketing Communications Coordinator

Deb Bishop, Senior Loan Closer

Cynda Shirey, Loan Closer

Carliss Fumuso, Loan Closer

Brianna Walsh, Special Projects Manager

Jeff Sims, Business Development Officer

Ten or More Years:

Linda Holmes, Bookkeeper

Harry Leach, Houston Regional Manager

Aaron Milligan, Portfolio Servicing Manager

SBA Notice: Continuing Extension Act of 2010

April 2010

On April 15, 2010, the President signed the Continuing Extension Act of 2010 (H.R. 4851) that appropriates $80 million to fund new 7(a) and 504 loans under Sections 501 and 502 of the American Recovery and Reinvestment Act of 2009 (the “Recovery Act”). Specifically, these funds are available for the payment of certain 7(a) and 504 loan fees and a higher SBA guaranty for eligible 7(a) loans.

In addition, this legislation extends SBA’s authority to provide a higher guaranty for eligible 7(a) loans to May 31, 2010.

The Recovery Loan Queue homepage will remain on the website in the “green” phase as long as funding for new Recovery loans remains readily available. Information on the Recovery Loan Queues may be found on SBA’s website at http://www.sba.gov/recoveryq/index.html.

Funding of Increases to Previously Approved Loans
This additional $80 million will also be used to fund increases to previously approved 7(a) and 504 Recovery loans that were funded on or after April 1, 2010 with the supplemental funds provided by H.R. 4938.

For previously approved 7(a) and 504 Recovery loans that were funded from either the original Recovery Act appropriations or the supplemental funds provided in the Department of Defense Appropriations Act, 2010 (the “DOD Appropriations bill”), requests for increases to these loans will be approved as funds become available through the cancellation of loans that were funded from the same appropriations that originally funded the loan.

For example, if a previously approved loan that was funded out of original Recovery Act appropriations needs an increase, that increase may only be funded if another previously approved loan funded out of the original Recovery Act appropriations is cancelled. A cancelled loan that was funded by the DOD Appropriations bill cannot be used to fund an increase for a loan that was originally funded with Recovery Act appropriations.

As a reminder, for 7(a) and 504 Recovery loans that were funded from the appropriations provided by the Temporary Extension Act of 2010 (i.e., loans approved between March 2 and March 28, 2010), no requests for increases may be considered. If the borrower needs additional funds, a new loan application will be required.

Continuing Requirements
As a reminder, all Recovery Act requirements continue to apply to all 7(a) and 504 loans approved under sections 501 and/or 502 of the Recovery Act. This includes the requirement to document the loan file to show compliance with the particular eligibility requirements for these loans. SBA Information Notice 5000-1134, issued December 9, 2009, reminds 7(a) lenders and CDCs of the specific documentation requirements for certifications concerning the borrower’s hiring practices and that no Recovery loan funds go towards financing restricted uses (swimming pools, golf courses, zoos, aquariums and casinos or other gambling establishments). Lenders and CDCs are also reminded of the requirements governing the reporting of jobs created and retained.

SBA’s website will be modified consistent with this Notice.

SBA Field Offices will advise 7(a) lenders and CDCs of this Notice. Questions concerning this Notice should be directed to the lender relations specialist in the local SBA field office. The local SBA field office may be found at www.sba.gov/localresources.

Grady B. Hedgespeth
Director, Office of Financial Assistance

April 2009 Interest Rate on SBA 504 Loans Declines to Record Low - 5.25%

April 2009

 The Small Business Administration's (SBA) 504 loan program is currently providing long-term, fixed rate financing for commercial real estate at the lowest interest rate since the program's inception. The SBA's lending partners, Certified Development Companies (CDCs) are busy working with small business borrowers who are taking advantage of this record low interest rate to finally purchase or build their new facilities.

(Vocus) April 14, 2009 -- NADCO (http://www.nadco.org), the trade association for the nation's Certified Development Companies (CDCs), reports that the interest rate for a 20-year SBA 504 loan (http://www.nadco.org/i4a/pages/index.cfm?pageid=3362) has hit a record low for the projects funded in April 2009. This rate is the lowest it has been since the program's inception in 1986. The April debentures that funded this month’s SBA 504 loans were sold to investors at an interest rate of 4.31%. This low rate, coupled with the new fee reductions provided by the Congressional stimulus bill, led to an effective interest rate – including servicing fees – of only 5.25% (http://www.nadco.org/files/public/0409Rates.pdf) for this month.

Chris Crawford, NADCO President, commented, "This is truly an historic opportunity for access to long term capital for small businesses right now. The low rate that the 504 debentures sold for this month is added to the stimulus bill fee reductions and the continuation of the elimination of the SBA’s borrower fee for this year. All these factors make the interest rate for SBA 504 loan the lowest it has ever been for small business borrowers. This is an incredible rate for a 20-year, fixed rate commercial loan with as low as a 10% down payment."

The Small Business Administration's (http://www.sba.gov/services/financialassistance/sbaloantopics/cdc504/index.html) (SBA) 504 loan program provides long-term, fixed rate financing for commercial real estate. Since its inception 504 has funded nearly $40 billion in loans to growing small businesses. The SBA's lending partners, Certified Development Companies (CDCs) are extremely busy working with small business borrowers who are taking advantage of these record low interest rates to purchase, build or expand their own facilities.

Added to the advantages of these low interest rates and fees, with some businesses closing their doors as a result of the recession, there are more and more commercial properties coming onto the market at very attractive prices. If a small business has been considering investing in a building, now is a great time to act. "NADCO was instrumental in convincing Congress to eliminate fees on SBA 504 loans as a way to provide new low cost opportunities for small businesses to invest in their own facilities. With these historical low rates, and no up-front fees, now is the time for business owners to consider expansion of their facilities. Our CDC members are working hard with our bank partners, and we have money available for sound business expansion projects," Crawford said.

Crawford went on to predict, "When I talk to CDCs and our bank partners around the country, I hear a good deal of unanimity on what will happen as borrower demand for fixed asset financing picks up this year. Small business borrowers and banks are going to turn to SBA 504 loans in record numbers for their long term financing when they start expanding again. There is just no better deal available for the purchase of real estate, or for expansion of existing facilities. I urge any business owner thinking about expanding to call their banker and ask about the SBA 504 program.”

About the National Association of Development Companies (http://www.nadco.org) (NADCO):

Created in 1981, the National Association of Development Companies is the trade association for America’s Certified Development Companies (CDCs). Certified by the U.S. Small Business Administration, CDCs are community-based economic development organizations that serve their local communities and states, and are dedicated to the promotion of small business expansion and job creation through SBA’s 504 Loan Program. In addition to the 504 program, many CDCs also provide small businesses with access to other Federal, state and local economic development loan programs. These programs can provide both long and short term funding for borrowers.

Based in the suburbs of Washington, D.C., NADCO provides legislative and regulatory support for the 504 Loan Program on behalf of CDCs, the program’s lending partners (including first mortgage lenders, attorneys and others allied to the industry), and 504 small business borrowers. For more information, please call (703) 748-2575 or visit http://www.nadco.org.

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Austin Business Journal Best Places To Work Award

June 2009

Capital CDC is awarded second Best Place to Work in Central Texas.

Capital CDC Executive Director recognized for Outstanding Dedication and Commitment to Supporting Small Businesses

May 2009

Capital Certified Development Corporation’s Executive Director, Craig Pinkley, was honored as a 2008 Small Business Week Special Awardee at the annual United States Small Business Administration's San Antonio District Office Small Business Week Awards Luncheon. The luncheon was held May 15, 2008 in San Antonio and honored the nation's top entrepreneurs and champions for small business through various recognitions and ceremonies.

Craig Pinkley was recognized with a special award, from Joseph Montes, the SBA Region VI Regional Administrator, for his “ongoing dedication and commitment to supporting small business throughout Texas, New Mexico and all of Region VI.”

Craig has served as Capital CDC’s Executive Director since 2001, growing the business from 6 employees to today’s 36 employees. Capital CDC is an economic development firm created to provide access to capital for Texas and New Mexico businesses utilizing the Small Business Administration’s (SBA) 504 Loan Program. The 504 Loan Program, in partnership with bank and non-bank lenders, provides long-term, lowequity, fixed-rate financing for fixed assets/real property, which may include the construction, land, acquisition, renovation and equipment needs of a small business.

“These past few years have been incredible for Capital CDC,” said Pinkley, “and we are striving to continually improve our services, our processes, and our staff. To receive such a special recognition from our SBA Regional Administrator for all of our hard work and small business support was both an honor and a pleasant surprise.”

Capital CDC is ranked number one of approximately 34 CDCs within its five state region, which includes Arkansas, Louisiana, New Mexico, Oklahoma, and Texas. Capital CDC is headquartered in Austin, Texas and has five additional satellite offices in Dallas/Fort Worth, El Paso, Houston, San Antonio and Albuquerque, New Mexico.

ABJ Best Places To Work 2007 Award

June 2007

Capital CDC is awarded the fourth Best Place to Work in Central Texas.

Capital CDC Announces New Mexico Expansion

August 2006

Austin-based Capital CDC announced its move into the New Mexico market with the opening of its Albuquerque office. This is the first new CDC to be authorized to expand in the state of New Mexico since 1993. The Albuquerque office is led by Lorena Chavez. Prior to Capital CDC, Chavez was a Business Development Specialist and Portfolio Management Specialist for Enchantment Land Certified Development Company.

“This expansion will accommodate a growing client base in New Mexico who now has a choice of CDC’s in their market,” explains Chavez.

Capital CDC is a nonprofit organization that assists businesses in obtaining loans through the U.S. Small Business Administration’s 504 Program. The SBA’s 504 Loan program provides long-term, fixed-rate financing for fixed assets, which may include construction, land, acquisition, renovation and equipment needs of a small business.

While 504 loans can be made for as much as $4 million for manufacturing businesses, and up to $2 million for other industry types, “most are much lower,” explains Craig Pinkley, Capital CDC’s Executive Director. “Our average project size is probably about $1,000,000.”

Loan activity for Capital CDC has increased in 2006. Capital CDC provided the first seven months of the year.

Founded in 1993, Capital CDC is headquartered in Austin, Texas with satellite offices in Dallas/Fort Worth, El Paso, Houston and McAllen. Capital CDC is currently ranked number one of approximately 30 CDCs within its five state region, which includes Arkansas, Louisiana, New Mexico, Oklahoma, and Texas. It is ranked number nineteen out of over 260 CDCs throughout the nation.

ABJ Best Places To Work 2006 Award

June 2006

Capital CDC is awarded the fourth Best Place to Work in Central Texas. Click here to read the article.

Capital CDC President Named National Board Member of the Year

May 2006

Click here to read the article.

Capital CDC Completes Sale of Incentive Products Group

May 2006

Click here to read the article.

ABJ Best Places To Work 2005 Award

June 2005

Click here to read the article.