Local CDC to Join National Initiative To Provide Access To Capital for Veterans
Austin, TX – Capital CDC, a non-profit certified development company (CDC) announced its partnership with the National Association of Development Companies (NADCO) and the Small Business Administration (SBA) in VetLoan Advantage, a strategic veteran lending initiative.
NADCO and the SBA have committed to increasing small business lending to veterans by 5 percent per year for the next five years, for a total of at least $475 million in additional loan volume for veteran entrepreneurs.
NADCO unveiled VetLoan Advantage, at its Annual Meeting in San Diego. VetLoan Advantage, which will complement the SBA’s efforts, will offer discounts and other rebates on commercial real estate and working capital SBA loans. In 2012, 10 percent of SBA 504 or commercial real estate loans went to military veterans. VetLoan Advantage will boost that number.
Thomas Braasch, Executive Director of Capital CDC said: “We want help our veterans and our communities by providing lower cost access to capital to fund start-up and existing businesses. This program will help veterans fund commercial real estate and equipment at a lower cost and help in their transition back into civilian life. The VetLoan Advantage will help Veterans, create jobs and support economic development within our community. We are proud to offer such a great opportunity to our veterans.”
Beth Solomon, NADCO President and CEO, who has been spearheading this lending effort, said: “It’s vital for lending institutions to step forward and help veterans make the transition, especially because capital access is a problem for all small businesses, but an added problem for veterans who already have challenges transitioning back into the civilian economy. We want to equip and empower our brave and extremely capable men and women to pursue the American Dream and create the jobs our country needs.”
It is NADCO’s goal to have 40 percent of certified development companies participate in the delivery of VetLoan Advantage discounts that represent a value from $3,000 to $20,000 in direct savings to the qualified veteran loan applicant. The VetLoan Advantage is a voluntary program created in partnership with the Small Business Administration’s efforts to increase SBA 504 loans to veterans by 5 percent per year for the next five years.
ABOUT THE SBA’s 504 LOAN INITIATIVE
The 504 loan initiative is a self-funded long-term financing tool at no cost to taxpayers providing small businesses with long-term, fixed-rate loans with down payments as low as 10 percent. Certified development companies (CDCs) work with the SBA and private sector lenders to provide financing to small businesses under the 504 loan program.
ABOUT VETLOAN ADVANTAGE
NADCO’s VetLoan Advantage strategic initiative, founded in cooperation with the Small Business Administration and NADCO’s 250 certified development company members, offers small business financing discounts and training to veterans who own businesses or are interested in small business ownership. In the first four months of 2013, 381 veterans have received loans totaling $260 million – or approximately 10 percent of all loans offered through NADCO members.
The 504 VetLoan Advantage Program allows Capital CDC to waive a portion of the processing fee. For 504 loans under $1.5 million Capital CDC will waive 0.5% of the processing fee (a savings of up to $7,500). For 504 loans ranging from $1.5 million to $5.5 million, Capital CDC will waive 0.25% of the processing fee (a savings of up to $13,750). This is an incredible benefit to Veterans, and an opportunity to put cash back in the pockets of veteran entrepreneurs.
ABOUT CAPITAL CDC
Capital CDC administers a variety of small business loans to grow the Texas and New Mexico economies, while providing small business owners an avenue to affordable, commercial real estate financing. For 20 years we have provided SBA financing to small business owners through the long-term, real property SBA 504 Loan Program and the 108 Loan Program in partnership with the City of Austin.
Our flagship SBA 504 Loan Program provides 90%, low-interest, long-term financing for owner-occupied real estate. Qualified small businesses must be for-profit, occupy at least 51% of the owned real estate, and have strong debt service.
With rates at historical lows and rebates offering cash-in-hand, this is a program to take advantage of immediately! Contact your local Business Development Officer for details. Capital CDC is headquartered in Austin, Texas, but has offices throughout the state of Texas. To learn more about the VetLoan Advantage Program, contact Capital CDC at (512) 327-9229 or visit www.www.capitalcdc.com.
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