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.

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.