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NADCO and Capital CDC Honor Veteran-Owned Small Businesses



THE WOODLANDS, TX – [November 10, 2014] In celebration of Veterans Day, retired Army Commissioned Officer and small business owner, James Reece, was honored at an event hosted by Capital CDC, a non-profit organization certified by the Small Business Administration (SBA) to provide access to capital for small businesses.


 

504 lenders such as Capital CDC seek to grow local veteran small businesses by offering eligible veteran-owned businesses savings on their SBA 504 Loan under the VetLoan Advantage program. This program, used by James Reece, was created by the National Association of Development Companies, a national organization representing Certified Development Companies.

 

After serving in the U.S. Army for over two decades, James and his wife Tracy, acquired the local branch of a Kids 'R' Kids franchise using the SBA 504 Loan Program, which provides financing for major fixed assets such as equipment or real estate. “We set out to do something entrepreneurial and service oriented that would make an impact in the community,” said Reese.

 

Through purchasing the facility James and Tracy saved 29 jobs and pursued their passion to provide quality childcare to local families.

 

"The VetLoan Advantage program has been hugely successful and we will continue to partner with NADCO to promote small business lending that supports our nation's heroes in achieving their entrepreneurial goals,” said Harry Leach, Capital CDC Business Development Director.

 

Capital CDC has engaged with four veteran small business owners since May 2013, providing over $1,320,000 in loans through the VetLoan Advantage initiative.



James Reece, who has over 23 years of operations, management and leadership experience and Tracy, who is a certified public accountant, acquired Kids ‘R’ Kids in the fall of 2013. With a relentless work ethic and an open door policy for all children, they are rapidly growing their business.

 

"The 504 program is economic development and job creation. I recognize James and Tracey for taking the risk of entrepreneurship – you can look around and see the jobs that were made possible by the risk they took," said Mark Winchester, SBA Houston District Director. "Our goal is to provide small business owners with the information, tools, and capital to succeed. The SBA 504 and other SBA loan programs are helping Texans thrive. This Veterans Day we celebrate the successes of James and Tracy Reece and we thank them for their contributions to the families in The Woodlands as well as for their service to our country.” 


 View a list of SBA initiatives and resources here.

 

A panel discussion celebrating the couple included local civil servants and activists involved in Veterans issues, many of whom had served themselves. Representative Steve Toth of the Texas House of Representatives, Mark Winchester of the Houston SBA District Office, and Carl Salazar of the Houston Office of Veterans Affairs all spoke about their experiences as Veterans as well as the local resources available for veteran entrepreneurs.

 

The VetLoan Advantage program allows Capital CDC, and other participating 504 lenders, to offer special discounts for veteran borrowers with over 49% business ownership.

 

 


SBA Administrator Visits 504 Borrower



[MILFORD, DE - October 3, 2014] In case you missed it, SBA Administrator Maria Contreras-Sweet toured First State Manufacturing, a 504 loan recipient financed by Mid-Atlantic Business Finance Co., to celebrate Manufacturing Day.

Administrator Contreras-Sweet, a member of President Obama’s Cabinet, emphasized the importance of the SBA 504 lending program to the agency’s overall goals: “At the SBA, we offer what we call the ‘three Cs and a D.’ The first C is capital; we support loans on reasonable terms to support small businesses.”

Curt Withrow, President of Mid-Atlantic Business Finance Co., praised his borrower, “First State Manufacturing and [owners] Eli and Sher Valenzuela are wonderful examples of how hard work, good ideas and a willingness to take risks can lead to great success. Mid-Atlantic Business Finance Company is proud that the SBA 504 program played a role in this American success story!”

First State Manufacturing is undoubtedly a remarkable tale of entrepreneurship, with humble beginnings in the Valenzuelas’ garage in 1997.

 

Today, First State Manufacturing is a well-established industrial sewing company, which employs more than 70 specialized technicians. 

"The 66,000-square foot facility we’re standing in right now was made possible by loans under our 504 program, which helps entrepreneurs buy their own building," stated Contreras-Sweet. The building in which the event took place was made possible by a 2010 SBA 504 loan, funded by Mid-Atlantic. 

Notably, Eli Valenzuela is a veteran of the U.S. Army where he upholstered the C-5 Galaxy, one of the most impressive aircrafts in the world. Sher Valenzuela is a political force in Delaware, where she has run for Lieutenant Governor as well as State Treasurer.

Maria Contreras-Sweet was not the only one celebrating, either. SBA Regional Administrator Natalia Olsen presented remarks during the event and J.P. Morgan’s Worldwide Securities Services division – the third party lender – was also represented.

First State Manufacturing was recognized as the Delaware Small Business Persons of the Year Award in 2012.

 


To read Administrator Contreras-Sweet's remarks, click here.

 

 

Contact Heather McNelis at hmcnelis@nadco.org for more details.

 

 


ALS Ice Bucket Challenge Cracks the CDC Industry



[28 AUGUST 2014] The CDC industry has begun to take part in the ALS Ice Bucket Challenge, a viral phenomenon that escalated in popularity in July 2014 and has continued to spread rapidly ever since. The concept involves dumping a bucket of ice water on one’s head in an effort to promote awareness of the disease amyotrophic lateral sclerosis (ALS) and encourage donations to ALS research. Once a participant completes the challenge, he or she may nominate other participants to partake and donate.

It is no surprise that this fun and worthy cause has started to catch on in the philanthropic CDC industry, an industry of non-profit lenders with a mission of economic development.

The trend began with Mary Mansfield, Senior Vice President at Bay Colony Development Corp. and her team, who completed the challenge and nominated three additional CDCs: Evergreen Business Capital, REI of Oklahoma and California Statewide CDC.

Since the nomination, each of the three nominees accepted Bay Colony’s challenge, capturing the spectacles on tape. Further, each of the nominees nominated additional individuals or groups to participate in the challenge.

 

As of July 29, the ALS Ice Bucket Challenge has raised a projected $93.2 million for the ALS Association, up from $2.7 million in the same period in 2013, and has attracted 2.1 million new donors.

 

View the completed challenges below

Mike Owen, CDCSBF

http://www.youtube.com/watch?v=oJ1qSc6gXPI&list=UUzhqkb5ziR2_tt39Y-TkTVg 

 

Wisconsin Business Development

https://www.youtube.com/watch?v=bKyNrT97SrU 

 

TMC Financing, Rich Grant

https://www.youtube.com/watch?v=th3A_H5A-Z0&feature=youtu.be

 

Bay Colony Development Corporation
http://vimeo.com/103819743

Evergreen Business Capital
https://www.youtube.com/watch?v=aWbQTdPSiY4&feature=youtu.be

REI of Oklahoma
http://connect.nadco.org/viewdocument/?DocumentKey=8180defb-7946-475c-9ef5-e37588430022

California Statewide CDC, Jeff Boone
https://www.youtube.com/watch?v=JfjExjKJFjw&feature=em-upload_owner#action=share

 

Dakota CDC

http://connect.nadco.org/viewdocument/?DocumentKey=504c3cf8-5212-45c5-b973-fdf12b7a2ba1

 

 

 


National Association of Development Companies (NADCO) Announces New Leadership, Barbara Vohryzek, To Take Helm As CEO In October

20 August 2014 | Washington, DC - The National Association of Development Companies (NADCO) announced today that its Board of Directors has selected Barbara Vohryzek as the organization’s next President and Chief Executive Officer. Vohryzek, the founder and former long-time Executive Director of California Statewide Certified Development Corporation (CDC), will take over leadership on October 1. Vohryzek will also serve as the Principal Manager of Development Company Finance, LLC, which handles the funding process for SBA 504 loans.

"After a thorough search process, the board is pleased to welcome Barbara as President and CEO of NADCO. She is the right individual to lead the organization through the upcoming regulatory challenges ahead," said Sally Robertson, Chair of the NADCO Board of Directors. "Barbara brings a wealth of 504 lending experience and more importantly, a contagious passion for our industry and a commitment to promoting economic development and helping small businesses.”

During her tenure as Executive Director of California Statewide CDC, Vohryzek served as Chair of NADCO and was a key member of the Development Company Finance, LLC Funding Committee. Most recently, she served as the Deputy Director for Small Business and Small Business Advocate in the State of California Governor’s Office of Business and Economic Development.
I am thrilled to be given this opportunity to serve as the next President and CEO of NADCO. I look forward to working with our partners across the small business industry to create vital jobs and spur economic development in communities across the country,” added Vohryzek.

ABOUT SBA Real Estate Advantage (REAL 504) Loans The SBA Real Estate Advantage (REAL 504) Loan asset finance initiative is SBA's flagship economic development program, designed to assist small business owners obtain 10% down, low-rate, long-term financing for capital assets like the purchase of real estate and equipment. Recognizing that small businesses often have difficulty getting long-term, low-cost financing, SBA REAL 504 program provides favorable loans for businesses to invest in facilities and equipment, so they can continue to expand and create new jobs long term.

ABOUT NADCO The National Association of Development Companies (NADCO) is the trade association of SBA lenders including Certified Development Companies (CDCs), nonprofit companies that have been certified by the Small Business Administration (SBA) to provide financing for small businesses under the SBA 504 Program. NADCO represents nearly 270 CDCs, serving all 50 states. In 2013, the industry provided $5.1 billion to nearly 8,000 U.S. small businesses.




Statement from National Association of Development Companies

3 June 2014 | Washington, DC - The National Association of Development Companies (NADCO), is pleased to announce that Kurt Chilcott, President and CEO of CDC Small Business Finance will serve as NADCO's Interim President until a permanent replacement is hired.

"I am honored to have been asked to serve NADCO's members as Interim President and CEO. As Certified Development Companies (CDCs), we play a unique role in our nation's economy by increasing access to capital for small businesses to expand and create jobs. NADCO remains committed to advocating for our members across the country and working with Congress and SBA to create an environment where low-cost financing can be easily accessible to all small businesses."
As President and CEO of San Diego-headquartered CDC Small Business Finance, Chilcott has helped drive significant growth in a variety of small business lending programs and services. CDC Small Business Finance as the perennial national leader in SBA 504 lending has assisted over 10,000 small businesses with over 12 billion in financing resulting in the creation of over 125,000 jobs. Chilcott has a long history of association leadership in the economic development and small business lending fields, and currently serves on the Board of the National Association of Government Guaranteed Lenders. In 2013, Chilcott received the Lifetime Achievement Award in Economic Development from the International Economic Development Council, its highest accolade. During his tenure, CDC Small Business Finance has received the SBA National Lender Award a record three times, most recently in 2007. Chilcott received his B.A. from Harvard and holds a Master’s in Public Policy from UC Berkeley.




 Joint NADCO/DCF/Solomon Resignation Statement

3 June 2014 |  The National Association of Development Companies ("NADCO"), Development Company Finance, LLC ("DCF"), and Beth Solomon, President and...  ...Chief Executive Officer of NADCO and Principal Manager of DCF, jointly announced today that Ms. Solomon has resigned from her positions, effective at the end of May.




Celebrating Washington D.C. Small Businesses

15 May 2014 |  WASHINGTON, DC – In celebration of National Small Business Week, the National Association of Development Companies (NADCO) is highlighting small businesses that were able to help their communities prosper through a little-known SBA financing tool called the Real Estate Advantage (REAL 504) Loan. The REAL 504 loan is SBA’s flagship economic development program, offering a game-changing 10% down, low-rate, long-term financing product that helps businesses purchase real estate and equipment.

While sometimes called “the best kept secret in small business finance,” SBA's lending programs give life to dreams big and small. In Washington D.C., this program has been a driver of the much celebrated revitalization of 14th Street NW. Today, a hopeful diner might wait over two hours for a seat in one of the area's popular restaurants, but what that diner probably doesn't know is that the backbone of the 14th Street people see today was built in part by REAL 504 loans.

Street staples that have drawn a dedicated following such as the music venue Black Cat, Cork Market & Tasting Room, and Busboys & Poets were all recipients of REAL 504 loans. Innovative small businesses including Fathom Creative, W. Millar & Co Caterering, and Swann Laundromat also utilized the low-cost financing program to build their presence on 14th Street. These businesses were some of the anchors that drew others to the area and helped breathe new life into the corridor.

The SBA lending program reaches far beyond 14th Street. The popular Yes! Organic Market chain now has seven locations, and has utilized the REAL 504 loan program to help finance three of them. The family-owned business started offering organic products long before they were a common grocery item, and as demand for organic products has increased, so has their employee base. Yes! Organize Market started with five employees and now has 200 at all locations. 
"The 14th Street revitalization and the success of family-owned businesses prove the American Dream is still alive," said NADCO President & CEO Beth Solomon. "But small businesses need the oxygen of low-cost financing to create the jobs America needs and restore our economy to full-strength. The REAL 504 and other SBA loans provide a lending ladder for Washington D.C. innovators to create the products, services and opportunities that help their communities thrive.”

In 2013, 12 REAL 504 loans were made in Washington D.C. worth nearly $10 million. The SBA requires that every $65,000 of REAL 504 financing create or retain one job. Based on that, the REAL 504 program helped create or retain up to 150 jobs in Washington D.C. last year.

“This is a program that clearly works,” said Solomon. "NADCO is fighting to help more small businesses access capital by working with Congress to reinstate the REAL 504 debt refinancing program."

In the wake of the recession, Congress authorized the debt refinancing program as a pilot program that allowed small business to refinance their existing debt at a lower rate.

That pilot program expired in September of 2012, but in the brief time it was available, over 2,700 small businesses refinanced $5 billion of their own capital locked up in their real estate. That capital was then reinvested into their businesses to create and sustain jobs. According to an independent analysis by Deutsche Bank, at least 100,000 small businesses could greatly benefit from a return of the program.

NADCO is working with Congress to reauthorize this program, known as the CREED Act in Congress, to unlock another critical source of capital for small businesses.

For a high resolution copy of the infographic, email AMcCarthy@hamiltonps.com. For more information, visit www.nadco.org.


14th Street Infographic - Click Graphic to Enlarge



Celebrating Massachusetts Small Businesses



14 May 2014 | 
15 May 2014 | SEATTLE, WA

 Local small business owners, Small Business Administration (SBA) officials, Certified Development Companies, and others will gather at a roundtable organized by the National Association of Development Companies (NADCO) at 10:30 a.m on Tuesday, May 20 at Act 3 Catering in Tukwila.

The roundtable will focus on the SBA’s Real Estate Advantage Loan (REAL 504) program and its positive impact on Washington's economy. Participants will also discuss the importance of reinstating the 504 debt refinancing program to unleash increased small business growth in Washington and across the country.


WHO
  • Patti Kibbe, President & CEO, Evergreen Business Capital
  • Beth Solomon, President & CEO, NADCO
  • Terri Doremus, Owner, Act 3 Catering
  • Chris DiJulio, Owner, Lincoln Moving & Storage
  • TBA small business owners, economic development professionals
  • and legislative officials 

WHAT
Small business lending roundtable

WHEN
Tuesday, May 20, 2014
10:30 AM

WHERE
Act 3 Catering,
15665 Nelson Pl.
Tukwila, WA 98188






Celebrating Massachusetts Small Businesses

14 May 2014 | Boston, MA – In celebration of National Small Business Week, the National Association of Development Companies (NADCO) is highlighting small businesses that were able to help their communities prosper through a little-known SBA financing tool called the Real Estate Advantage (REAL 504) Loan. The REAL 504 loan is SBA’s flagship economic development program, offering a game-changing 10% down, low-rate, long-term financing product that helps businesses purchase real estate and equipment.

While sometimes called “the best kept secret in small business finance,” SBA's lending programs give life to dreams big and small, and Boston's Modern Pastry is just one example. Modern Pastry has been serving cakes, candies and pastries to nearly every sweet tooth in Boston for over 70 years. The popular Italian bakery just opened its new, expanded location in the North End thanks in part to the REAL 504 loan program. With a REAL 504 loan, the family-owned business was able to purchase the 8,276 square foot building on Hanover Street. Modern Pastry anticipates adding four new jobs to keep pace with Boston's demand for sweet, Old World treats.

For those who prefer a good sweat session over a delicious Italian Cannoli, there is Central Rock Gym – a destination for rock climbing enthusiasts. Central Rock Gym was started by brothers Ed and Joe Hardy, who each discovered a love of climbing separately but came together to dedicate their lives to sharing their passion with others when they opened their first location in Worcester in 2009. Ed and Joe are committed to providing the highest quality indoor climbing experience in an environment that encourages teamwork and community. After opening their second location in Hadley in 2011, Ed and Joe turned to the REAL 504 loan program to purchase the land and fund the construction of its third location in Watertown. With the help the low-cost financing, Ed and Joe have been able to involve even more families in the gym's climbing competitions, birthday parties and other fitness activities.



"The success of these family-owned businesses shows the American Dream is still alive in Massachusetts," said NADCO President & CEO Beth Solomon. "But small businesses need the oxygen of low-cost financing to create the jobs America needs and restore our economy to full-strength. The REAL 504 and other SBA loans provide a lending ladder for innovators in Massachusetts and beyond to create the products, services and opportunities that help their communities thrive.”

In 2013, 273 REAL 504 loans were made in Massachusetts worth approximately $154 million, a 43 percent increase since 2009. The SBA requires that every $65,000 of REAL 504 financing create or retain one job. Based on that, this program helped create or retain up to 2,368 jobs in Massachusetts in 2013.

“This is a program that clearly works,” said Solomon. "NADCO is fighting to make it even better by working with Congress to reinstate the REAL 504 debt refinancing program."

In the wake of the recession, Congress authorized the debt refinancing program as a pilot program that allowed small business to refinance their existing debt at a lower rate.

That pilot program expired in September of 2012, but in the brief time it was available, over 2,700 small businesses refinanced $5 billion of their own capital locked up in their real estate. That capital was then reinvested into their businesses to create and sustain jobs. According to an independent analysis by Deutsche Bank, at least 100,000 small businesses could greatly benefit from a return of the program.

NADCO is working with Congress to reauthorize this program, known as the CREED Act in Congress, to unlock another critical source of capital for small businesses.

For more information, visit www.nadco.org.





Celebrating Missouri Businesses

13 May 2014 | KANSAS CITY, MO – In celebration of National Small Business Week, the National Association of Development Companies (NADCO) is highlighting small businesses that were able to help their communities prosper through a little-known Small Business Administration (SBA) financing tool called the Real Estate Advantage (REAL 504) Loan. The REAL 504 loan is SBA’s flagship economic development program, offering a game-changing 10% down, low-rate, long-term financing product that helps businesses purchase real estate and equipment.

While sometimes called “the best kept secret in small business finance,” SBA's lending programs give life to dreams big and small, and Springfield's Dance With Me is just one example. Started in the home of champion level partners – and married couple – Anne and Andy Walls, Dance With Me was born of a vision to share the ease and fun of dancing with other Missourians. In 2013, Anne and Andy realized there were few venues in Springfield for big events. With the help of a REAL 504 loan, they were able to secure a 12,000 square foot space where they celebrate weddings and other special events, as well as continue to share their love of the Waltz, Foxtrot, and Argentine Tango.

For those who would rather enjoy motorized sports than put on their dancing shoes, there is Surdyke Yamaha at the popular Lake of the Ozarks. A family business since 1968, Greg Surdyke followed in his father's footsteps and has worked hard to expand the company. When a more visible marina spot opened up on the lake, Greg and his wife Ginger jumped at it, and thanks to a REAL 504 loan were able to secure it. The new location allowed Greg and Ginger to hire 15 additional people and experience the best year in the history of the company. Their company also gives families from across the region a new, more accessible location to buy, rent and repair WaveRunners, boats and other motorized vehicles that allow them to take full advantage of the fun activities the Lake of the Ozarks has to offer.

All those dances and water sports can build up an appetite, and there are plenty Missouri restaurants that have also taken advantage of the REAL 504 loan program. Hackett's Hot Wings in Joplin is just one example. The restaurant's many fans may not know that Floyd Hackett, an Army veteran with a passion for hot wings, and his wife Jacqueline used a REAL 504 loan to move Hackett's Hot Wings into its new larger space on Main Street. Nationally renowned Mike Shannon’s Steaks & Seafood in St. Louis was also able to utilize the program to move into the historic Mark Twain Bank building on Market Street.



"The success experienced by the Walls, Surdyke and Hackett families show that the American Dream is still alive in Missouri," said NADCO President & CEO Beth Solomon. "But small businesses need the oxygen of low-cost financing to create the jobs America needs and restore our economy to full-strength. The REAL 504 and other SBA loans provide a lending ladder for Missouri innovators to create the products, services and opportunities that help their communities thrive.” 

In 2013, 158 REAL 504 loans were made in Missouri worth approximately $89 million, that's a 26 percent increase from the number of loans made in 2009.“This is a program that clearly works,” said Solomon. "NADCO is fighting to help more small businesses access capital by working with Congress to reinstate the REAL 504 debt refinancing program."

In the wake of the recession, Congress authorized the debt refinancing program as a pilot program that allowed small business to refinance their existing debt at a lower rate.

That pilot program expired in September of 2012, but in the brief time it was available, over 2,700 small businesses refinanced $5 billion of their own capital locked up in their real estate. That capital was then reinvested into their businesses to create and sustain jobs. According to an independent analysis by Deutsche Bank, at least 100,000 small businesses could greatly benefit from a return of the program.

NADCO is working with Congress to reauthorize this program, known as the CREED Act in Congress, to unlock another critical source of capital for small businesses. By law, every $65,000 of SBA REAL 504 financing must create at least one job.

For more information, visit www.nadco.org.





Celebrating Bay Area Small Businesses

12 May 2014 | SAN FRANCISCO, CA

In celebration of National Small Business Week, the National Association of Development Companies (NADCO) is highlighting small businesses that were able to help their communities prosper through a little-known SBA financing tool called the Real Estate Advantage (REAL 504) Loan. The REAL 504 loan is SBA’s flagship economic development program, offering a game-changing 10% down, low-rate, long-term financing product that helps businesses purchase real estate and equipment.

While sometimes called “the best kept secret in small business finance,” SBA's lending programs give life to dreams big and small, and the SBA's 2014 Small Business of the Year, Iron Construction in Sunnyvale is just one example. Founded by Claudia Folzman and David Edgar in 2001, the commercial construction company specializes in commercial interiors, data centers, clean rooms and labs. As the company grew, Claudia and David partnered with the Bay Area Development Company and Wells Fargo Bank to purchase a 27,000 square foot space in Sunnyvale in 2013. They have plans to double their workforce, make the space LEED Gold Certified, and of course, create more room for the dogs. That's right, Iron Construction is dog-friendly and believes having your best friend at your side can make work a lot more fun.

Artisan bakery Semifreddi's in Alameda is another small business that took advantage of the REAL 504 loan program. The popular bakery – whose breads and pastries can be found in stores across the Bay Area – was started in 1984 by Tom Frainier, his sister and brother-in-law, all three UC Berkeley graduates with a passion for baking. Twenty-five years later, the team was able to use a REAL 504 loan to purchase a 33,000 square foot building to house their employees and baking secrets, churning out 180,000 loaves of bread each week for Bay Area residents to consume.

Some may not know that Sugar Bowl Bakery in Hayward, another sweet treat business, was started by an immigrant from Vietnam, Andrew Ly. He escaped his home country on the third try in 1979, and came to San Francisco with no money and no English skills. Andrew focused on quality, took ESL classes and earned an accounting degree so he could build his business. By 2005, Andrew found the REAL 504 and was able to secure a 56,000 square foot building to support his company that employs over 300. 

"The American Dream is still alive in the Bay Area," said NADCO President & CEO Beth Solomon. "But small businesses need the oxygen of low-cost financing to create the jobs America needs and restore our economy to full-strength. The REAL 504 and other SBA loans provide a lending ladder for California innovators to create the products, services and opportunities that help their communities thrive.”

Countless other Bay Area small businesses have also benefited from the REAL 504 program, from the world famous French Laundry in Napa, to San Jose's Mt. Eden Floral Company, and La Tortilla Factory in Santa Rosa.

In 2013, 1,526 REAL 504 loans were made in California worth approximately $1.3 billion, a 59 percent increase since 2009. The SBA requires that every $65,000 of REAL 504 financing create or retain one job. Based on that, the REAL 504 program helped create or retain up to 19,733 jobs in California last year.

“This is a program that clearly works,” said Solomon. "NADCO is fighting to make it even better by working with Congress to reinstate the REAL 504 debt refinancing program."

In the wake of the recession, Congress authorized the debt refinancing program as pilot program that allowed small business to refinance their existing debt at a lower rate.

That pilot program expired in September of 2012, but in the brief time it was available, over 2,700 small businesses refinanced $5 billion of their own capital locked up in their real estate. That capital was then reinvested into their businesses to create and sustain jobs. According to an independent analysis by Deutsche Bank, at least 100,000 small businesses could greatly benefit from a return of the program.

NADCO is working with Congress to reauthorize this program, known as the CREED Act in Congress, to unlock another critical source of capital for small businesses.

For more information, visit www.nadco.org.




Tweet for National Small Business Week

May 8, 2014
National Small Business Week (May 12-16) is right around the corner, and it offers a unique opportunity to spotlight the work you do for small businesses.

Here at NADCO, we’ll be doing regional and national outreach promoting the REAL 504 loan program and highlighting success stories, and we want you to join us!

That’s why we’re launching the National Small Business Week Social Media Challenge.

The challenge is easy: tweet, a lot.

The options are endless, you could take a photo in front of any local small business your CDC provided a REAL 504 loan to, tweet out the number of small businesses you’ve helped, or ask your followers to tweet the names of their favorite small businesses.

In all your tweets, use hashtag #NADCOsmallbiz, this will allow us (and others participating) to promote your tweets so you get even greater engagement!

NADCO will retweet you throughout the week, and the most active CDC throughout National Small Business Week will receive this awesome gift basket of NADCO swag and a $50 Starbucks gift card.

We’re really excited about leveraging social media to get the REAL 504 message out. Below you’ll find some sample tweets as well as some Twitter best practices. 

Thanks in advance for your participation.

Happy Tweeting!




Sample Tweets

  1. Love [@handle]! They received a 504 loan from us, maybe your small business could too PHOTO #NADCOsmallbiz
  2. Help us celebrate National Small Business Week! Tweet a photo of your favorite small business using hashtag #NADCOsmallbiz
  3. .[@handle] was able to open this second location with a 504 loan. Cheers to small business. PHOTO #NADCOsmallbiz
  4. Did you know [@handle] received a 504 small business loan? RT if you’re a fan PHOTO #NADCOsmallbiz
  5. In 2013 we helped X number of small businesses receive a 504 loan. See if yours qualifies: [link to your website] #NADCOsmallbiz
  6. What’s your favorite small business and why? One of our favs is [@handle] PHOTO #NADCOsmallbiz
NOTE: The “[@handle]” is a placeholder where you should insert the twitter handle of the small business you’re referring to. If the business doesn’t have a twitter handle, simply use its name. Also, if you start your tweet with the handle, be sure to put a period in front of it. That is the only way the entire twitterverse will see it. Otherwise, just you and the company with see it! Twitter Best Practices, From Twitter!
  1. Create Tweets that resonate: Combine exciting, useful content with an engaging, unique tone to emotionally connect with your audience. Include links, pictures and videos. And remember to keep your Tweets prompt and timely—a crucial element for Twitter success.
  2. Keep Tweets short and sweet: There’s no magical length for a Tweet, but a recent report by Buddy Media revealed that Tweets shorter than 100 characters get a 17% higher engagement rate.
  3. Make it real-time: Timing matters, especially for breaking news or live Tweets. But how about for everything else? The short answer: it depends on the content of the Tweet, your objectives, your audience, their geography and more. The best way to optimize the timing of your Tweets is to test and learn.
  4. Tweet often: Like timing, Tweet frequency depends on a number of variables such as your audience, purpose and business objectives. That said, a good basic rule is between three to five Tweets per day. You may want to try tweeting a couple times a day to see how your audience reacts, then adjust as needed.




 New SBA Administrator to Headline Economic Development Conference

April 9, 2014

Washington, DC – In one of her first public appearances as the new Administrator of the U.S. Small Business Administration (SBA), Maria Contreras-Sweet will keynote the 2014 National Association of Development Companies (NADCO) Annual Meeting in Colorado Springs, CO, April 30-May 3, 2014.

“Administrator Contreras-Sweet's appearance will highlight the SBA’s flagship economic development program known as the Real Estate Advantage Loan (REAL 504) program and the nation’s 250 SBA Certified Development Companies (CDCs), charged with community-based small business lending and economic development," said NADCO President & CEO Beth Solomon.
"This meeting comes at an exciting time, as the SBA implements new regulations to expand access to capital for small businesses and improve system quality," Solomon said. To address these issues and others, federal officials will participate in several general sessions and 16 breakout sessions focused on new governance and credit risk standards. "The new regulations and Administrator Contreras-Sweet's keynote presence at the NADCO Annual Meeting are a testament to the administration’s commitment to America's small businesses and the vital role SBA Certified Development Companies play in growing jobs in our communities across the nation," she said.




NADCO Applauds Senate Confirmation of Maria Contreras-Sweet as Administrator of U.S. Small Business Administration

Washington, DC, March 28, 2014 – The National Association of Development Companies (NADCO), the trade association of U.S. Small Business Administration (SBA) lenders including the nation's SBA Certified Development Companies, praised the Senate's confirmation of Maria Contreras-Sweet, founder and board chairman of ProAmerica Bank, as the new SBA Administrator today.

“As a community banker who specialized in supporting underserved small businesses, Maria Contreras-Sweet brings the leadership and experience the nation’s small businesses need at the SBA,” said National Association of Development Companies President & CEO Beth Solomon. “In an economy where attaining critical access to capital remains a challenge for small businesses, Ms. Contreras-Sweet’s expertise and experience will be integral to our goal of expanding credit to America’s job creators and underserved communities.”

Contreras-Sweet, an active member in the Los Angeles Latino community, has played a critical role in providing access to capital for California’s small businesses and brings a wealth of corporate and government experience to her new role. Contreras-Sweet’s confirmation fills the final spot in President Obama’s second term Cabinet, and upon assuming the helm, she will have the opportunity to continue to strengthen the Real Estate Advantage (REAL 504) Loan Program, which enables small businesses to buy real property and fix assets, and produced more than 7,700 loans in FY 2013, for a total of more than $11.7 billion in small business finance.
Contreras-Sweet has also said she supports the reinstatement of the popular debt refinancing program known as "debt refi," which would enable small businesses to unlock trapped equity in their businesses to create and sustain jobs.

“Administrator Contreras-Sweet's efforts to focus on lending to underserved communities and expand capital access through initiatives like debt refinancing are urgently needed. While Wall Street has seen a faster recovery and is thriving, Main Street communities need the nation's focus and support to generate the jobs our communities must have. NADCO and the nation’s SBA Certified Development Companies look forward to working in partnership with Contreras-Sweet as the tip of the spear in revitalizing our economy block-by-block, and loan-by-loan as she continues to provide a strong vision for growth in the months ahead.”





NADCO Praises SBA Regulatory Reforms

March 20, 2014 | Washington, DC – The National Association of Development Companies (NADCO) praised the announcement of regulatory reforms by the Small Business Administration (SBA) that will make the agency's loan programs more accessible and easier to use, and urged the Senate to confirm SBA Administrator nominee Maria Contreras-Sweet so that progress can continue.

The new rules streamline existing regulations as well as strengthen governance standards - two objectives long supported by the nation's SBA Certified Development Companies, which consist of mostly non-profit community-based capital access centers in over 250 communities nationwide.
"SBA's effort under the Obama administration to reform and streamline lending regulations is a critical step forward in expanding capital access to Main Street when our small business job creators need it most," said NADCO President & CEO Beth Solomon. "This regulatory reform will help the nation's SBA Certified Development Companies make a big difference one small business and one community at a time."

Solomon continued, "A quick confirmation by the full Senate of SBA Nominee Maria Contreras-Sweet will send a clear signal that Congress is doing the right thing for small businesses. Partisan gridlock is not acceptable as an excuse to keep Main Street waiting any longer.



NADCO offers grants to CDCs for economic development

March 18, 2014
 
Do you know of an economic development effort that deserves support?

NADCO, through a partnership with the Development Assistance Corp., will award grants this year to 501(c) 3 organizations nominated by NADCO members that are engaged in development activities.

The Economic Development Opportunity Grants of $1,000 to $5,000 will be awarded beginning at NADCO’s Annual Meeting in Colorado Springs, CO, April 30-May 2.
The awards and funding will recognize organizations nominated by NADCO members for projects, initiatives, partnerships, and solutions that strengthen economic development initiatives in communities.

To apply, CDCs should submit the NADCO Economic Development Opportunity Grant Application, up to two pages in length, by April 15, 2014, to Denise Ripley, Manager, Programs & Operations of NADCO, dripley@nadco.org.

APPLICATION FORM



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.




NADCO Praises Senate Small Business & Entrepreneurship Committee on Confirmation for Maria Contreras-Sweet


WASHINGTON DC | March 6, 2014 — The National Association of Development Companies (NADCO) President & CEO Beth Solomon released the following statement today on behalf of the nation’s 250 SBA Certified Development Companies after the Senate Small Business & Entrepreneurship Committee passed Maria Contreras-Sweet’s nomination to lead the Small Business Administration. "NADCO, representing U.S. Small Business Administration (SBA) lenders, is proud to enthusiastically support Maria Contreras-Sweet to be Administrator of the SBA. As a community banker whose life has been dedicated to empowering underserved small businesses and entrepreneurs, she understands first- hand the challenges that are facing our communities today. Her leadership is not only welcome in Washington, but critical at this time as all of us need to work across the aisle to find solutions for America’s communities and our economy.

NADCO and the nation’s SBA CDCs look forward to working in partnership with the Senate Small Business & Entrepreneurship Committee and Ms.Contreras-Sweet as the tip of the spear in revitalizing our economy block-by-block, and loan-by-loan. We urge a swift confirmation by the full Senate so that our important work together can begin.”




CEO Report - Congress is discussing SBA Lending. Will you be in Washington?

February 12, 2014

Dear NADCO Members,


SBA lending and the REAL 504 program are in the news.
  • Today: SBA Administrator nominee Maria Contreras-Sweet goes to the Senate for confirmation hearings. NADCO has worked to ensure that she is asked about the 504 program and debt refi.
  • Yesterday: Federal Reserve Chair Janet Yellen was questioned about capital access in her first congressional appearance since become the Chair.
  • Next week: Sen. Maria Cantwell (D-WA) is expected to be announced as the new Chair of the Senate Small Business Committee.
With new leadership at the SBA and in Congress, your attendance at the NADCO Government Relations Conference is critical to raising awareness and ensuring continued Congressional support and funding for the Real Estate Advantage (504) Loan Program and the CDC industry. In addition to the collective impact of meetings with lawmakers, the NADCO Government Relations Conference will offer insights from political experts, a Small Business Lending & Investment Summit with small business and banking leaders, and opportunities to cultivate support through our PAC. See the full agenda here. Bonus sessions will include Media Training, Lobbying, and Headshot Studio – to obtain a professional individual headshot.

Now is the time to tell the stories of the jobs we create. EVERY NADCO MEMBER SHOULD COME TO WASHINGTON WITH 3-4 EXAMPLES OF DEMONSTRATED ECONOMIC DEVELOPMENT IN THE COMMUNITIES THEY SERVE.

Starting today, NADCO members can download customizable FAQs and Talking Points on Debt Refi to help tell our story: "What is Debt Refi?" and "Talking Points" -- and feel free to produce them on your CDC letterhead.
In addition, at the conference we’ll get inspiration from the winners of the NADCO Marketing Contest who will be recognized in Washington. This is an opportunity to show the SBA, Congress and the media that our industry is vibrant and building a bright future. Enter the contest and be recognized! There are many opportunities to win, including an iPad Mini!

Your attendance at this conference is critically important. Now is also the time to include the future leaders of our CDCs and the industry to demonstrate the strength and bright future of our loan programs and CDC industry to stakeholders in Washington, D.C.

There are just a few rooms left at the conference hotel. Please register today!

NADCO Reflects On State Of Union Address,Calls For Continued Commitment To Small Business Growth


January 28, 2013
Today, small business leaders reacted to President Obama's second State of the Union Address of his second term as well as the Rebublican response from Representative Cathy McMorris Rodgers.

Beth Solomon, President and CEO of the National Association of Development Companies, the trade association for Certified Development Companies (CDCs) that administer SBA 504 Real Estate Advantage Loans (REAL) said:

"America's small businesses did not feature significantly in the SOTU speech. As our small businesses account for the employment of more than half of all US workers, we were pleased to hear President Obama reference record-high lending to small business during his administration including the REAL (504) Loan Program, which enables small businesses to buy real property and fixed assets. In 2013, this initiative delivered more than 7,700 loans to communities across the country for a total of more than $11.7 billion in lending. While we hope the administration continues to build on this momentum in the year ahead, the nation needs more focus on a small business job creation agenda to fuel a more comprehensive economic recovery.
While we are disappointed that the President did not address these issues directly in his speech this evening we are encouraged by his recent appointment of Maria Contreras-Sweet as sign of his enduring commitment to the small business community. NADCO stands ready to work with the President, the SBA Administration, and policymakers in Washington to enact smart, pro-growth measures that will ignite an economic recovery that will be led, as always, by the engine-- small business."



CEO Report - NextGen 1.5.2015


January 10, 2014

One of our most significant efforts as an industry is "NADCO NextGen,” a strategic initiative to prepare for our future. NextGen is not an age range, but the attitude that the sky is the limit for our nation’s Certified Development Companies and the small businesses we serve.

SBA is highly supportive of this effort to prepare for the future.
NADCO NextGen’s main goals are:Develop future industry leaders.Increase diversity of our industry leadership.Build relationships among our emerging leaders and those of stakeholder industries.

At NADCO’s 2014 Government Relations Conference, NADCO NextGen will have the opportunity to participate in a first-ever NextGen Bonus Session, including (1) Mentoring Session with the NADCO Board of Directors, (2) Media Training Bootcamp, (3) Lobbying Congress 101, (4) Headshot Studio – to obtain a professional individual headshot. The NextGen Bonus Session will be open to all NADCO Government Relations Conference attendees, with a focus on NextGen attendees.

 

In addition, winners of the NADCO Marketing Contest will be recognized in Washington. This is an opportunity to show the SBA, Congress and the media that our industry is vibrant and building a bright future. Enter the contest and be recognized! There are many opportunities to win.



With new leadership at the SBA and in the House and Senate Small Business Committees, attending the NADCO Government Relations Conference is critical to raising awareness and ensuring continued Congressional support and funding for the Real Estate Advantage (504) Loan Program and the CDC industry. In addition to the collective impact of meetings with lawmakers, the NADCO Government Relations conference will offer insights from political experts, a Small Business Lending & Investment Summit with small business and banking leaders, and opportunities to cultivate support through our PAC. See the full agenda here.

Your attendance at this conference is critically important. Now is also the time to include the future leaders of our CDCs and the industry to demonstrate the strength and bright future of our loan programs and CDC industry to stakeholders in Washington, D.C.

Space is limited, please register today!

Thank you for your leadership and support.

Sincerely,

Beth




NADCO Releases First Small Business Lending Report (SBLR) Of 2014


Jan. 9, 2013

Loan Volume Continues to Plummet, Amidst Expiration of Debt Refinancing and Uncertainty of Fed’s Stimulus Reduction

WASHINGTON, DC –The National Association of Development Companies (NADCO) Small Business Lending Report (SBLR) showed an overall decrease in volume of this month’s commercial real estate and equipment finance loans to small businesses, reflecting a declining demand that is a result of rising economic uncertainty and termination of the Small Business Debt Refinance Program.

There were 444 businesses funded in January 2014 (as compared to 424 in December 2013), more than 20% under the 12-month average in 2013 of 561 loans. The 20-year monthly loan pool size was $283,660,000 -- below the 12-month average in 2013 of $370,206,417 and a nearly 40% drop from $469,708,000 a year ago in January 2013.

This month's debenture rate rose to 3.46% compared to 2.13% a year ago in January 2013, and is also much higher than the 12-month average in 2013 of 2.76%.
Interest rates are also significantly higher than last year’s 2013 average and will likely continue to rise in the wake of the Federal Reserve’s announcement in December 2013 to begin unwinding the massive stimulus that the Fed had pumped into the economy since the financial crisis and subsequent recession. Throughout 2014, the Fed will reduce its purchase of government bonds and mortgage backed securities by $10 million dollars each month. Additionally, the void created by the expiration of the Small Business Debt Refinancing Program is taking its toll on small business owners across the country.

"While the number of loans increased slightly, pool size is down significantly. There is a hesitancy in the market, coupled with the elimination of debt refinancing —a one-two punch that is hurting small business job creation, "said Beth Solomon, President & CEO of NADCO. "If policymakers want to bolster our economic recovery this year, we need to support legislative initiatives that will allow small businesses to flourish like debt-refinancing. Otherwise, we will continue to see two very different economies on Main Street versus Wall Street.”

 



CEO Report: Legislative Update

January 9, 2014

Dear NADCO Members,

With Congress back in Washington and beginning a new year of work, this NADCO update summarizes the latest legislative activity affecting CDCs and the Real Estate Advantage Loan (REAL 504) program.

While the situation remains fluid, it now appears Congress will not meet its self-imposed deadline and pass an omnibus spending bill by January 15. That spending bill is supposed to implement the December budget agreement reached by the House and Senate. Instead, it appears Congress will pass another short-term Continuing Resolution (CR), which means our program will continue to receive a federal subsidy (with no fee increases) until sometime in February when the CR expires and when perhaps an omnibus spending bill will have been agreed to.

 

The inaction on an omnibus spending bill also means debt refinancing will not happen any time soon. Senate Small Business Committee Chairman and Ranking Member, Senators Mary Landrieu (D-LA) and Jim Risch (R-ID), and NADCO, pushed hard to get our debt refinancing language into the Senate version of the omnibus spending bill. We succeeded in doing so. They then pushed the House to accept the debt refinancing measure. Senator Risch’ staff had a meeting with the House Small Business Committee staff and several discussions with them, as did NADCO.

Yesterday, Chair Landrieu was attempting to reach out to Minority Leader Nance Pelosi (D-NY) and House Small Business Committee Chair Sam Graves (R-MO)on the issue. And, NADCO met with the staff of House appropriations subcommittee Chairman Ander Crenshaw (R-FL) to urge House acceptance of our language. However, House Small Business Committee Chair Graves and Ranking Minority Member Velazquez objected to the inclusion of our language and their opposition killed the effort. That means we have to find another way to get debt refinancing (with the associated new fee structure) enacted.


There is a silver lining in these clouds. NADCO has met with Chairman Graves’s staff and they now say they want to work with us on a new debt refinancing bill. A potential House Small Business Subcommittee hearing on the issue is expected. We have already begun working on this new process as discussed with us by House staff. We will keep you apprised of developments. As always, should you have any questions please contact NADCO and we will provide as clear an answer as is possible.

Many thanks,

Beth




ICYMI: Six years post-recession, a tale of Wall St. and Main St.


WASHINGTON - January 7, 2013

In case you missed it, CNBC's small business reporter, Heesun Wee, covered the disconnect between small businesses and Wall Street with regards to this year's economic outlook. Full article available here and below.


Six years post-recession, a tale of Wall St. and Main St.
By: Heesun Wee| Editor, CNBC.com

Heading into a new year and six years after the Great Recession began, small-business owners are modestly growing and adding jobs—not roaring back to life like the stock market.

"It feels totally different to be a small-business owner in America on Main Street than on Wall Street, where they're popping Champagne corks," said Beth Solomon, president and CEO of the National Association of Development Companies (NADCO), a Washington-basedtrade group that supports Small Business Administration lenders.

Job creation among smaller employers traditionally has jump-started recoveries. But this time, the trend has remained largely absent.

Private sector job creation in November indeed tilted toward businesses with fewer than 50 employees, which added 102,000 jobs.

But new small-business positions topped 100,000 for only two of the reported 11 months last year. And most of those gains were in the services area, often associated with relatively low-wage sectors, including retail, leisure and hospitality—not the "quality." goods-producing jobs that come with benefits and higher, full-time paychecks. ADP figures for December employment are scheduled to be released Jan. 8.

Beyond modest job creation, tight credit markets still hover over Main Street. Small-business commercial real estate and equipment finance loan volume is at its lowest level in nearly three years, according to NADCO.

Other issues loom over small-business owners, including Obamacare and health-care costs, increases in the minimum wage and a general suspicion that after last year's partial government shutdown, policymakers may bring more surprises for 2014.

In addition, as the Federal Reserve retreats from keeping interest rates low, borrowing costs for businesses are expected to rise.

All these variables are influencing smaller employers to remain on the sidelines or to pursue measured growth.

"Small businesses are bracing for more challenges," Solomon at NADCO said. "Capital is not flowing sufficiently, period. And that's why we're still not getting the small-business job creation we need."

A lending 'thaw'
Tight capital, of course, doesn't mean lending stood still in 2013.

Facing less regulatory scrutiny than larger institutions, small to midsize banks are carving growing niches, with that trend continuing this year, said Frederick Cannon, an analyst for financial services firm Keefe Bruyette & Woods in New York.

 

Bank loan balances should continue to grow in line with nominal GDP in 2014, he said, with smaller banks getting a disproportionate share of the growth.

Both New York-based Signature Bank and Silicon Valley Bank, headquartered in Santa Clara, Calif., posted loan growth of more than 20 percent last year, versus single-digit loan growth for larger banks, Cannon said.


Credit standards overall remain tight for small businesses, he added, "but I think we're seeing a little thawing of that."

Small-business owner André Vener agrees. Vener is a partner in Dog Haus, which sells gourmet hot dogs. They have three locations in and around Pasadena, Calif., with expansion plans for 2014.

Vener and fellow venture partners—veterans in the fine dining business—dipped into their own cash reserves and eventually their parents' pocketbooks to cover the cost of the three outlets. The owners launched three years ago, when the recovery was just gaining traction, and decided to bypass traditional lenders.

"At the time, in 2010-11, banks really weren't lending," Vener recalled. "It was too much time, too much paperwork. It was pretty much hard to get a loan for a small business. It was a disaster."

 

With three locations up and running now, and more than 40 franchises sold in more than three states, banks and other potential investors are courting Vener and his partners.

"I believe it's a sign of our success, a sign of the economy and a willingness to lend," Vener said.

In fact, small-business optimism edged higher in November—reversing an October decline. December data is scheduled to be released later this month.

 

Rise of alternative lending
Despite the slightly higher sentiment reading for November, more entrepreneurs said they were pessimistic and expect a weakening economy during the next few months, according to the National Federation of Independent Business (NFIB).

And financing was not small employers' top business problem. Owners instead cited taxes, regulations, red tape and weak sales as among their top concerns, according to NFIB data. "Few firms think now is a good time to expand or make capital outlays or hire much," said NFIB Chief Economist Bill Dunkelberg.

Of course, new entrepreneurs with a thin track record have the biggest hurdle in securing financing—especially as the recovery remains uneven. That's partly why alternative lending sources have emerged to attract those who may have been turned down by banks.

Lending by nonbanks should expand this year with the re-emergence of non-bank consumer and commercial finance companies, said Cannon at Keefe Bruyette.

In fact, more hedge funds have stepped in to fill the shoes of traditional lenders. Direct- or asset-based lending funds attract capital commitments to make loans to midsize companies, which are overlooked by banks because of stricter lending standards.

Wall Street-Main Street gap
It's this push to riskier, more expensive forms of borrowing that only reinforces the gulf between a cautious Main Street and upbeat stock market. U.S. stocks last week closed 2013 at records, with the broad S&P 500 posting its largest annual jump in 16 years and the blue chip Dow posting its biggest gain in 18.

"The extraordinary gains of the stock market in 2013 have not been matched in the paychecks of ordinary working people and small businesses," said Michael Santoro, professor of business ethics at Rutgers University. Outlined in his book, "Wall Street Values," he argues that market fortunes have become increasingly separated from the rest of society.

Solomon at NADCO said that "the Wall Street-Main Street disconnect is a tale of two Americas."

Despite the slightly higher sentiment reading for November, more entrepreneurs said they were pessimistic and expect a weakening economy during the next few months, according to the National Federation of Independent Business (NFIB).

And financing was not small employers' top business problem. Owners instead cited taxes, regulations, red tape and weak sales as among their top concerns, according to NFIB data. "Few firms think now is a good time to expand or make capital outlays or hire much," said NFIB Chief Economist Bill Dunkelberg.

Of course, new entrepreneurs with a thin track record have the biggest hurdle in securing financing—especially as the recovery remains uneven. That's partly why alternative lending sources have emerged to attract those who may have been turned down by banks.

Lending by nonbanks should expand this year with the re-emergence of non-bank consumer and commercial finance companies, said Cannon at Keefe Bruyette.

In fact, more hedge funds have stepped in to fill the shoes of traditional lenders. Direct- or asset-based lending funds attract capital commitments to make loans to midsize companies, which are overlooked by banks because of stricter lending standards.

Wall Street-Main Street gap
It's this push to riskier, more expensive forms of borrowing that only reinforces the gulf between a cautious Main Street and upbeat stock market. U.S. stocks last week closed 2013 at records, with the broad S&P 500 posting its largest annual jump in 16 years and the blue chip Dow posting its biggest gain in 18.

"The extraordinary gains of the stock market in 2013 have not been matched in the paychecks of ordinary working people and small businesses," said Michael Santoro, professor of business ethics at Rutgers University. Outlined in his book, "Wall Street Values," he argues that market fortunes have become increasingly separated from the rest of society.

Solomon at NADCO said that "the Wall Street-Main Street disconnect is a tale of two Americas."




Marketing Opportunity: Meet Bankers and Growing Franchise Brands!


January 6, 2014

Dear NADCO Members,

NADCO is continuing our commitment in 2014 to deliver opportunities to network with lenders and growing franchise brands. This year we will be kicking of our regional Franchise Lending Conferences hosted by BoeFly.com in Houston Feb. 4-5, 2014.

 

Bankers and C-Level management teams from twelve franchise brands will be presenting in Houston including Bojangles (real estate), Burger 21, Captain D’s, Checkers (real estate), Del Taco, Firehouse Subs, Hurricane Grill and Wings, Intercontinental Hotel Group (real estate), Martinizing Dry Cleaning, McAlister’s Deli, Papa Murphy’s, and Planet Fitness (real estate). They will be discussing their financing needs, expansion plans as well as unit economics and background on the brand.

 

 

 


This is a significant opportunity for CDCs to host bank partners in an event that has doubled in size since NADCO co-hosted the first Franchise Lending Spotlight one year ago. With a modest sponsorship, you can invite your banking colleagues at no additional charge to you or them. This offers them a direct marketing opportunity and benefit. They will thank you! For more information please visit the Conference Website or contact David Nayor, President & COO of BoeFly, at (212) 561-5959.

Sincerely,

Beth




NADCO CEO Report – Important Dues & Training Information


December 18, 2013

Dear NADCO Members,

NADCO is offering enhanced member benefits and training in 2014. As a NADCO member in good standing, your CDC can access the first online webinar session of NADCO’s Credit Risk Institute: "Introduction to Financial Statements” January 30, 2014. This session will advance understanding for CDC members of the nature, components, and structure of business financial statements.

Next, "Accounting Principles for Analysts” will be offered in February. This is the second in the series of online webinar training covering accounting principles that drive the formulation and structure of financial statements, to enhance effective financial statement and cash flow analysis. "Cash Flow Analysis Using Tax Returns” will be the last session in the series in March. The online web-based training will be followed by a four-day on-site course in May in Colorado Springs, CO, following the Annual Meeting.

NADCO’s Fresno Loan Servicing/Liquidation Workshop is scheduled for February 11-12. The workshop will include a day of discussions focusing on current and relevant servicing and liquidation topics. A free public tour of the Fresno SBA Loan Servicing Center with SBA leadership will be offered. Space is very limited.

 

Registration for these new opportunities will begin January 6, 2014 for NADCO members whose Q1 & Q2 dues are fully paid.

PLEASE verify your CDC’s billing contact and employee information by going to the CDC Member Directory and search using your CDC’s listed name in the Company/Employer section (or search by state) or send a full staff roster with contact information to Heather McNelis, Director of Marketing & Membership services at hmcnelis@nadco.org. Please note the is the billing/primary contact information must be correct in order for the system to function properly.

To verify that your Q1 and Q2 dues have been paid, please log in as the main billing contact, select "manage profile” in the upper left hand corner by the search bar, select "invoices,” then select "dues." Finally, select the paper symbol next to your dues invoice to verify the date and amount of each payment. If you successfully paid your dues in full, you should have received a confirmation email.

On January 13, the members-only section of the website as well as our regular technical and other communications will be closed to CDCs whose dues payments are not current. Non-member rates for training and conferences will apply. Don’t let this happen to you!

If your information in the system in accurate and your CDC has paid its Q1 & Q2 dues, training and event registration opens January 6, 2014. We look forward to serving you in the year ahead, and wish you season’s greetings and a successful 2014.

Sincerely,


Beth





NADCO Releases Final Small Business Lending Report (SBLR) Of 2013

FOR IMMEDIATE RELEASE
December 12, 2013
CONTACT: Heather McNelis: 202.349.0070

WASHINGTON, DC – As a pivotal 2013 comes to a close,, the National Association of Development Companies' (NADCO) December Small Business Lending Report (SBLR) confirmed what NADCO has been warning of for the better part of the year: small business commercial real estate and equipment finance loan volume was at its lowest in nearly three years.
There were just 424 Small Business Administration Real Estate Advantage Loan ("504") financed businesses funded for December (the lowest since January of 2010 and lower than last month's 480). The 20-year monthly loan pool size was $291,423,000 -- the lowest since July 2011. The debenture rate stayed flat at 3.38% - still much higher than the 1.93% a year ago, and higher than the 12-month average of 2.77%.

"We are keeping the best-kept secret in small business finance on the sidelines,” said Beth Solomon, President & CEO of the National Association of Development Companies (NADCO). "If policymakers are serious about strengthening our anemic economic recovery, they ought to support smart bipartisan initiatives like the CREED Act which would reauthorize the immensely popular and successful REAL Debt-Refi, which literally saved thousands of businesses during the recession."

 

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NADCO Boosts Advocacy with New Government Relations & Grassroots Position


WASHINGTON, DC | December 11, 2013 – The National Association of Development Companies (NADCO) announced that Claire O’Rourke will join the organization as Director, Government Relations and Grassroots Campaigns, effective January 6, 2014.

Ms. O’Rourke joins NADCO from the U.S. Senate Committee on Small Business & Entrepreneurship, where she advised Committee Chairman Sen. Mary Landrieu (D-LA) on budget and appropriations issues, overseeing the SBA budget and directing annual budget hearings. Ms. O’Rourke worked with Republican and Democratic senators in conducting the committee’s work related to small business lending and other issues.

 

"Claire is a trusted member of the Senate Small Business & Entrepreneurship Committee staff who will add strength and visibility to our government relations efforts in Congress, in the administration, and in the states,” said NADCO President & CEO Beth Solomon. "Working every day to advance small business lending and our industry of SBA Certified Development Companies, her efforts will help our industry fuel small businesses to create the jobs America needs.”

Ms. O’Rourke also worked as a Legislative Assistant for Rep. Kathy Dahlkemper (D-PA) and in the public affairs section of the U.S. Chamber of Commerce, where she coordinated and executed Congressional strategy on Chamber legislative priorities and spearheaded outreach to key Congressional offices. She also worked in the International Division at the Chamber.

She graduated with distinction with a bachelor’s degree from the University of Virginia, majoring in Foreign Affairs with a minor in Philosophy. Ms. O’Rourke also studied Chinese at East China Normal University in Shanghai.



NADCO CEO Report - Marketing Contest: Win an iPad Mini and be recognized in Washington, D.C.


December 10, 2013

Dear NADCO Members,

It is my pleasure to announce the first-ever NADCO March Madness Marketing Awards, recognizing outstanding marketing and media initiatives by our members. These coveted awards will set the industry benchmark for excellence across all areas of CDC marketing. The winners of these Awards will be NADCO members who took risks, made strides and used the power of media and marketing in telling our industry’s story. So many of you are doing the hard work -- now it’s time for you and your team to get recognized for it!

Are you ready to enter? It’s easy, because your campaigns and people speak for themselves. But you have to enter to be considered, so don't let your competitors steal the show. Winners will be announced at the NADCO Government Relations Conference in Washington March 3-5. All who enter will be eligible to win an iPad Mini!

  • Blog: Recognizing an outstanding, influential blog from an organization with the goal of connecting a NADCO member with its target audience and stimulating engagement.
  • Blogger: An individual who articulates the CDC story regularly and effectively in blogs.
  • Email Newsletter/s: Consistent packaging of high-quality content delivered via email. As much supporting data (open rates, for instance) as possible should be included.
  • Facebook Communications: Use of Facebook by a NADCO member. How many Facebook friends do you have? How many posts, how many likes?


  • Videos: Tell us your story in one of three categories: one-minute, three-minute, or "other.” Videos should tell a story about a great loan or the work of your CDC. Special consideration for highlighting NADCO marketing themes such as veterans, women-owned businesses, microbreweries, franchising.
  • Famous Brand: What is the most famous brand your organization has financed? Ten great stories will be chosen. Special consideration for young brands that became BIG with 504 financing.
  • Unique Story: Tell us your best 504 loan story – a loan or business that made a difference. An opportunity to highlight great community businesses and/or underserved borrowers. Please include a description of the company and/or entrepreneur, the loan, how it helped the business, how the business serves the community.

How to enter: For all categories except Videos, please submit entries by Feb. 14, 2013 to Heather McNelis, NADCO’s Director of Marketing & Membership Services at hmcnelis@nadco.org. Videos should be posted to the NADCO Facebook page with a YouTube link at https://www.facebook.com/NADCO504. Entries will be featured in the NADCO NewsBriefs and receive awards at the NADCO Government Relations Conference with SBA in Washington March 3-5. For more information, please contact Heather at hmcnelis@nadco.org.

This is a great opportunity to highlight the great stories of our industry. Tell us yours by entering today!

 

Beth



NADCO Releases November Small BusinessLending Report (SBLR)

November 14, 2013 - WASHINGTON, DC – On the heels of the federal government shutdown, the National Association of Development Companies' (NADCO) November Small Business Lending Report (SBLR) showed a downtick in commercial real estate and equipment finance loans to small businesses as compared to both last month's numbers and the 12-month average. While the shutdown was a major factor in the reduction in small business loans and volume, it's notable that the industry and the Small Business Administration (SBA) were able to continue the Real Estate Advantage Loan (REAL) program's 27-year history of monthly funding without interruption due to the commitment and hard work of SBA leadership and frontline staff.

 

There were 480 SBA REAL ("504") financed businesses funded for November (down from 564 in October. This month's numbers are down more than 20% from the 12-month average. The 20-year monthly loan pool size was just over $306 million -- the 12-month average is $384,600,000. The debenture rate stayed roughly flat, ticking up to 3.38% from 3.37% - still higher than the 2.09% a year ago, and is also much higher than the 12-month average of 2.65%.

 

"The government shutdown undoubtedly stifled job creation and economic growth in our country,” said Beth Solomon, President & CEO of the National Association of Development Companies (NADCO). "The chaos and lasting ramifications were self-inflicted by Congress – totally unnecessary. We hope this never happens again to our nation's small businesses, whose success is critical to the jobs and full economic recovery America needs."




Senate Small Business Leader Calls on SBA 504 To Return To Zero Subsidy To Reinstate Debt Refi


November 7, 2013
Washington, DC – Senator Jim Risch (R-ID), the Ranking Member of the Senate Small Business and Entrepreneurship Committee, yesterday called for a permanent extension of the Small Business Administration (SBA) Real Estate Advantage Loan (504) Debt-Refinance initiative, as long as the program returned to operating at zero subsidy. Senator Risch made these remarks while speaking at the National Association of Government Guaranteed Lenders' (NAGGL) Annual Conference in Palm Springs, CA.

"It is my belief that in order to sustain [the 504 program's] viability [it] must remain at zero subsidy, or very close to zero subsidy, in light of America’s tenuous financial position," Risch said. "Small business lending provides a lifeline to businesses but given the budget environment facing our country we can’t afford subsidizing every program."

"Moving forward I will continue to work to keep these lending programs at no cost to the taxpayer and ensure the SBA provides much needed and very popular lending options for our nation’s small businesses which are in everyone’s best interest," the Senator said.
"We applaud Sen. Risch's leadership on small business issues and agree that the time has come for our program to return to operating without any taxpayer subsidy," said Beth Solomon, President & CEO of the National Association of Development Companies (NADCO). "Particularly if doing so would mean the permanent extension of a proven initiative like REAL (504) debt-refinance, which literally saved thousands of small businesses during the recession and could empower our nation's job creators to drive our economic recovery if extended."

NADCO has proposed a fee structure in which SBA Certified Development Companies (CDCs) would temporarily pay extra fees to return the program to zero subsidy. By law, the fees would be borne by the CDCs, not small business borrowers.

Solomon concluded: "We are grateful for Senator Risch's common-sense approach to these critical issues and look forward to working with him to give small business owners the opportunity to create the jobs our communities need."


See full speech here.



Congressional Support For Debt-Refinance Continues To Grow


Washington, DC – In the wake of the recent shutdown of the federal government and in the midst of a weak economic recovery, support for a smart, bipartisan initiative that will give growing small businesses the capital they need to expand their operation and create jobs is increasing on Capitol Hill.

Congressman Brad Schneider (IL-10) and Congresswoman Betty McCollum (MN-04) are the latest cosponsors of the Commercial Real Estate and Economic Development (CREED) Act, which would extend the Small Business Administration's (SBA) Real Estate Advantage Loan (REAL) debt-refinancing for five years.

"The CREED Act is a bipartisan, zero-cost bill that is a proven vehicle for helping small businesses all across the country," said Beth Solomon, the President & CEO of the National Association of Development Companies (NADCO). "For policymakers looking for smart, public-private partnerships that empower job creators, this bill is a no-brainer."

The CREED Act was originally enacted as part of the Small Business Jobs Act of 2010 and enabled small business owners to refinance existing commercial mortgages, lowering their monthly mortgage payments to take advantage of historically low interest rates and funded entirely through fees assessed for refinancing projects. In Fiscal Year 2012, the last year of the program, more than 2,700 small businesses benefited from refinancing, unlocking $2.5 billion.

The measure, which expired on September 27, 2012, literally saved thousands of businesses in communities across the country during the recession, helping them accelerate the economic recovery. The five-year extension could offer capital access to more than 250,000 additional businesses across the country, saving them up to $20,000 per month.
"We applaud Members of Congress who are committed to real solutions that will help working families and small businesses in their communities," Solomon said. "We are grateful for Congressman Schneider and Congresswoman McCollum's leadership on this important issue and look forward to working with them to bring our economy back to full strength and create the jobs our communities need."

ABOUT THE CREED ACT

The Commercial Real Estate and Economic Development (CREED) Act, a zero-cost deft refinance program administered by the Small Business Administration, was originally enacted as part of the Small Business Jobs Act of 2010, enabling more than 2,700 businesses to unleash $2.5 billion locked in their real estate that was reinvested into their businesses to create and sustain jobs. The measure literally saved thousands of businesses in communities across the country during the recession, helping them accelerate the economic recovery.

Senator Mary L. Landrieu (D-LA), Chair of the Senate Committee on Small Business and Entrepreneurship, and Senator Jeanne Shaheen (D-N.H.), a senior member of the Committee introduced a five-year extension could offer capital access to over 250,000 additional businesses across the country, saving them up to $20,000 per month. Sen. Johnny Isakson (R-GA) is a co-sponsor.

Congresswoman Judy Chu (D-CA) has introduced the House version of the CREED Act (H.R. 1240), along with Congressman Tom Petri (R-WI).



Rep. Schneider Cosponsors Bill to Help Small Businesses Grow, Invest in New Technologies and Their Workforce


WASHINGTON—U.S. Congressman Brad Schneider (IL-10) today cosponsored the Commercial Real Estate and Economic Development Act (HR 1240), which would extend a Small Business Administration commercial real estate refinancing program that helps businesses create and retain jobs.

"As our economy continues to recover, we must work to ensure that our small businesses have the access to capital to invest in their futures,” said Schneider. "Through this program, small businesses in the Tenth District can receive the flexibility they need to keep their employees and grow their companies.”
The bill extends for five years an expansion of a program that encourages lenders to provide financing for real estate and major equipment, allowing for refinancing for the purposes of job creation or worker retention.

A member of the House Small Business Committee, Schneider has been an active supporter of small businesses, including introducing the AMERICA Works Act to bridge the skills gap and a measure to level the playing field for small businesses during tax reform.


Veterans Day Awards Recognize Top Lenders to Veterans


November 1, 2013

As Veterans Day approaches, the National Association of Development Companies (NADCO) today announced the top SBA lenders in the nation in terms of financing for veterans through the SBA Real Estate Advantage (504) Loan Program.

SBA Associate Administrator Ann Marie Mehlum, chief of the agency’s Office of Capital Access, joined NADCO in presenting the awards in Clearwater, FL recognizing the top lenders in NADCO’s VetLoan Advantage program offering low-cost financing to veterans.

The top 10 SBA Certified Development Companies (CDCs) in the country by loan volume delivered to veterans are CDC Small Business Finance, San Diego, CA ($77.6 million), Colorado Lending Source, Denver, CO ($37.7 million), Indiana Statewide Certified Development Corp., Indianapolis, IN ($22 million), Regional Business Assistance Corp., Mercerville, NJ ($19.4 million), Business Finance Group, Fairfax, VA ($15.7 million), Small Business Growth Corp. Chicago, IL ($12.6 million), Self-Help Ventures Fund, Raleigh, NC ($11.3 million), Mountain West Small Business Finance, Salt Lake City, UT ($11.2 million), New England CDC Wakefield, MA ($10.5 million), and Mortgage Capital Development San Francisco, CA ($8.4 million).

CDCs are community-based lenders offering the REAL (504) 10% down, low-interest, fixed-rate commercial real estate and asset loan, as well as Community Advantage, low-interest working capital loans under $250,000.

The top five bank lenders providing the most REAL (504) financing to veterans in FY2013 were Bank of America ($32.2 million), JP Morgan Chase Bank ($22.3 million), Wells Fargo Bank ($22 million), Citibank ($13.9 million), and KeyBank ($13.8 million).

"Our veterans, whose sacrifice cannot be forgotten, should have the chance to become leaders in the civilian economy,” said Beth Solomon, President & CEO of NADCO. "SBA loans are providing low-cost, high-octane fuel our veterans use to create and grow small businesses and live the American Dream.”

NADCO has partnered with the SBA in its "Pledge to Veterans” whose goal is to increase SBA lending to veterans 5% per year for the next five years. NADCO launched the VetLoan Advantage program, in which SBA Certified Development Companies have reduced fees on SBA loans, just before Memorial Day in San Diego, CA.


"VetLoan Advantage is off to a strong start, but we must do more to help our veterans transition to leadership in the civilian economy,” Solomon said. "It’s good for veterans, good for our economy, and good for America.”




Top lenders by region include:

Region 1
New England CDC ($10.5 million)
Granite State Economic Development ($5 million)

Region 2
Regional Business Assistance Corporation ($19.5 million)
Empire State CDC ($5.8 million)

Region 3
Business Finance Group ($15.7 million)
Chesapeake Business Finance Co. ($8 million)

Region 4
Self-Help Ventures Fund ($11.3 million)
Florida First Capital Finance ($8.7 million)

Region 5
Indiana Statewide Certified Development Corporation (22 million)
Small Business Growth Corp. ($12.6 million)

Region 6
North Texas Certified Development (4.8 million)
Small Business Capital Corp. ($2.5 million)

Region 7
Rural Missouri, Inc. ($3.9 million)
Black Hawk Economic Development ($1.6 million)

Region 8
Colorado Lending Source, Ltd. ($37.7 million)
Mountain West Small Business Finance ($11.2 million)

Region 9
CDC Small Business Finance ($77.6 million)
Mortgage Capital Development ($8.5 million)

Region 10
Evergreen Business Capital ($7.9 million)
Northwest Business Development ($6.9 million)






NADCO Statement on FY 2013 SBA Lending

Washington, DC, October 29, 2013 – The National Association of Development Companies (NADCO) issued the following statement reacting to the news that FY 2013 was the Small Business Administration's (SBA) third highest year of lending in history.

"The road out of the Great Recession is going to be paved by the hard work and resilience of our nation's 28 million small businesses," said Beth Solomon, NADCO's President & CEO. "The SBA's Real Estate Advantage (504) Loan (REAL) exemplifies smart public-private partnerships that empower entrepreneurs and job creators to grow and hire. Congress should put the pedal to the metal on supporting initiatives like these that cost the taxpayers nothing and offer tremendous return."

 

According to the SBA, the REAL (504) Loan Program, which enables small businesses to buy real property and fix assets, produced more than 7,700 loans in FY 2013, for a total of more than $11.7 billion in small business finance.

Although this is a slight decrease from FY 2012, this decrease demonstrates the importance of SBA’s 504 Refinancing Program, which temporarily allowed small business owners to use our 504 program to refinance commercial real estate and other fixed assets and gave SBA a record year for 504 lending in FY 2012. That program was authorized by the Small Business Jobs Act and expired in 2012, but a one-year extension of the program was included in the President’s FY14 budget and a bipartisan measure moving in Congress would reinstate the popular program permanently.

Solomon added: "I applaud Acting Administrator Hulit, former Administrator Mills, our SBA and bank partners who are without peer in their passion for American small business. NADCO's nearly 270 Certified Development Companies (CDCs) will continue to work hand-in-hand with the SBA, local banks and small businesses to bolster our economic recovery."



TODAY: Small Business Leaders To Hold Local Small Business Lending Roundtable



PHOENIX, AZ | October 22 – The job-creation benefits of a small business financing program that Congress is considering reinstating will be the focus of a roundtable discussion today, featuring local congressional leaders and local businesses who benefitted from the Small Business Administration's 504 Debt Refinance program. The SBA's Real Estate Advantage Loan (REAL) will also be discussed. These are particularly pertinent in the wake of the most recent federal government shutdown which cost the U.S. an estimated $1 billion in SBA lending and thousands of new jobs.

This Small Business Lending Roundtable is part of the National Association of Development Companies' (NADCO) Small Business Lending Roadshow, a nationwide push to raise the visibility of Certified Development Companies (CDCs) and the important work they do in giving small businesses the access to capital they need to grow and hire. NADCO has already held events in Cincinnati, Salt Lake City, and Minneapolis, and will continue to hold events like these all around the country.
Who
Kirk Butler, Owner, Cactus, Stone & Tile
Larry Nuffer, CDC Small Business Finance
Beth Solomon, NADCO

The following elected officials have also been invited:
Congressman Ed Pastor (AZ-07)
Congresswoman Kyrsten Sinema (AZ-09)
Senator John McCain (R-AZ)
Senator Jeff Flake (R-AZ)

What
Phoenix Small Business Lending Roundtable

Where
Cactus, Stone & Tile
401 South 50th Street
Phoenix, AZ 85034

When
Tuesday, October 22, 2013
10:00 AM PST

Media should RSVP to: Daniel Son, NADCO: (202) 822-1207 or dson@nadco.org



Small Business Leaders Urge Quick Resolution of Government Shutdown


WASHINGTON, D.C. | October 16 – Today, small business leaders repeated pleas for a government re-opening as early signs of a plan to end the shutdown emerged in Washington.

"We are now approaching three weeks without critical lending needed by the small business community to create jobs,” said Beth Solomon, President & CEO of the National Association of Development Companies (NADCO), the trade association for Certified Development Companies (CDCs) that administer SBA Real Estate Advantage Loans (REAL), commonly known as 504 loans. "The impact of the shutdown has already crippled much-needed economic growth and shaken our nation’s confidence in the economy. Small businesses have been impacted and will need time to recover, having been hit with extra costs in many cases due to delays in loan approvals.”
Sixteen days into the shutdown, more than 11 billion dollars in 7(a) lending and 5 billion dollars in 504 loans have been blocked by Congressional gridlock. Some businesses missed closing deadlines on property acquisition, resulting in penalties and other extra fees.

"This crisis – which was already one of the most predictable in history – needs to be resolved quickly, as small business owners cannot continue to sustain their livelihoods for much longer without access to financing throughout the Small Business Administration,” said Tony Wilkinson, President & CEO of the National Association of Government Guaranteed Lenders (NAGGL), the trade association of SBA lenders who provide the SBA’s 7(a) loans, funding that often fills an important void for startup and early stage companies that need access to longer-term loans. "This political recklessness has already inflicted economic pain that will take weeks – if not months – to recover from.”


TODAY: NADCO Chair To Testify Before Senate Committee On Impact Of Government Shutdown


WASHINGTON, DC | October 15, 2013- Sally Robertson, President & CEO of Business Finance Group and Chairman of the National Association of Development Companies (NADCO) will testify today before the Senate Small Business and Entrepreneurship Committee on the impact the federal government shutdown is having on small businesses.

Business Finance Group is the largest non-profit Certified Development Company (CDC) in the region, providing financing to small businesses in Maryland, Virginia, the District of Columbia, and four West Virginia counties under the Small Business Administration (SBA) Real Estate Advantage Loan (REAL) program, also known as the 504 Loan Program. BFG has helped more than 2,800 small businesses finance $3.2 billion in projects resulting in the creation of over 31,000 jobs.
WHO:
Sally Robertson, President & CEO, Business Finance Group and Chairman, NADCO

WHAT:
Senate Small Business and Entrepreneurship Committee Hearing: "Small Businesses Speak: Surviving the Government Shutdown?”

WHERE:
SR 428 A
Russell Senate Office Building

WHEN:
2:30 PM EST
Tuesday, October 15, 2013

NOTE To request an interview with Sally Robertson, contact Daniel Son at dson@nadco.org.




DCF LLC Update

To:All Certified Development Companies (Please disseminate to all appropriate personnel)
From:Wells Fargo Corporate Trust Services, CSA Team
Subject:Impact of Government Shutdown on CSA Operations
Date:October 1, 2013

Impact of Government Shutdown on CSA Operations

With the government shut down as of midnight, most of the 504 program will continue to function as normal. However, some functionality will cease to operate until the government reopens. These impacted functions require SBA involvement in order to be performed, which will be unable to occur until the government reopens.Please see below for impacted functionality ("Temporarily Ceased Functions”), as well as confirmation of functionality that will not be impacted ("Unaffected Functions”).Temporarily Ceased Functions (as of 12:00 AM, October 1st, 2013)

  • Authorization of new accelerations (accelerations not currently approved)
  • Authorization of new deferments
  • Authorization of new catch-ups
  • Authorization of assumptions
  • Funding exceptions
  • Prepayment exceptions
  • Future new loan funding (Nov. cycle and beyond)
  • Future prepayment releases (Nov. cycle and beyond)
Unaffected Functions
  • Existing and new ACH changes
  • Existing deferments
  • Existing catch-up payments
  • Debenture payments for existing accelerations
  • Funding new loans for October cycle (current funding period)
  • Rejected ACH payments
  • Check payments and bounced checks
  • Chris Urban
  • Vice President
  • Centralized Servicing Agent, SBA 504 Loan Program
  • Asset Backed Securities Corporate Trust Services
Contact DCFLLC for More Information
If you have additional questions, please contact DCFLLC at csa@dcfllc.com.


Government Shutdown Would Be Bad News For Minnesota’s Job Creators


September 26, 2013 | Washington, D.C. - In a time of filibusters and fiscal gridlock, no one knows whether Congress can come together in a bipartisan way to avoid a government shutdown. Most of the coverage and analysis has focused on the political fallout from this potential turn of events: which party will the public blame, who will lose more seats, and so on. There has been, unfortunately, much too little attention paid to the fact that a government shutdown would have more than just political consequences, but economic ones as well – that would have a real impact on Minnesota’s small business owners and entrepreneurs, who we work with every day.

According to the Bureau of Labor Statistics, small businesses have created two out of every three jobs over the past three years. With more than 11 million people unemployed nationwide, it’s clear that small business is critical to jumpstarting our economy and creating jobs that our friends and neighbors need. But for small businesses to grow, they need to access capital. And while commercial banks have, in many cases, tightened lending to small businesses, loans backed by the U.S. government through the Small Business Administration (SBA) have stepped in to support hundreds of thousands of small businesses. In better economic times, the SBA may have been considered the lender of last resort, but it is, for many small businesses, the lender of only resort. SBA Certified Development Companies like ours play a key role in that, bringing together growing businesses with lenders to promote economic development throughout Minnesota -- delivering loans banks, for various reasons, don't do on their own.

 

 

Last year, nearly 10,000 businesses nationwide accessed more than $6 billion through the SBA’s Real Estate Advantage Loan (REAL) initiative, commonly referred to as the 504 loan program, which is designed to help growing businesses finance real estate, construction and equipment. This is a rarity in public policy: a public-private partnership that embodies smart government.

 

And this is exactly what would be threatened by a government shutdown.

Our elected leaders should remember that business growth is not a switch that they can turn on or off as they see fit from Washington. Economic progress takes multiple business cycles of learning to navigate regulations, securing funding and laying out a strategic plan. A government shutdown, and the ensuing delay in SBA loans would cripple our already tepid economic growth. For many of these small businesses, they may not get a second chance at growth.

 

Limiting job creators’ access to capital at this critical point in the life of our nation’s economy is a profoundly bad idea. We are depending on our small businesses to grow and put our communities back to work. They are depending on SBA loans to finance their physical growth: real estate and machinery. And we are all depending on our elected leaders to put aside their risky, partisan gamesmanship and come together to pass legislation and enact policy in a bipartisan, responsible way that reflects our national needs and priorities.


We’ve often heard that uncertainty is bad for business; well uncertainty about whether the federal government will be open is the worst kind.


Our elected leaders should remember that business growth is not a switch that they can turn on or off as they see fit from Washington. Economic progress takes multiple business cycles of learning to navigate regulations, securing funding and laying out a strategic plan. A government shutdown, and the ensuing delay in SBA loans would cripple our already tepid economic growth. For many of these small businesses, they may not get a second chance at growth.

Limiting job creators’ access to capital at this critical point in the life of our nation’s economy is a profoundly bad idea. We are depending on our small businesses to grow and put our communities back to work. They are depending on SBA loans to finance their physical growth: real estate and machinery. And we are all depending on our elected leaders to put aside their risky, partisan gamesmanship and come together to pass legislation and enact policy in a bipartisan, responsible way that reflects our national needs and priorities.

We’ve often heard that uncertainty is bad for business; well uncertainty about whether the federal government will be open is the worst kind.






NADCO Praises Jeanne Hulit Appointment As Acting SBA Administrator


September 26, 2013 | Washington, DC - The National Association of Development Companies (NADCO), the trade association of SBA lenders, issued the following statement regarding the announcement that Jeanne Hulit, the SBA's recent Associate Administrator and head of the Office of Capital Access, has been named Acting Administrator.

"Jeanne has spearheaded efforts to streamline regulations and red tape, which has led to unprecedented capital access at a critical time," said NADCO Chairman Sally Robertson, President and CEO of Business Finance Group of Fairfax, VA.

"As a former small business banker and community lender, Jeanne understands how to get loans delivered to Main Street. We are very pleased that the important reforms underway will continue to have a champion at the top of the agency," said NADCO President & CEO Beth Solomon. "At this critical time in our economic recovery, ensuring that small business has access to capital is essential to creating the jobs America needs.




NADCO Releases September Small Business Lending Report (SBLR)

Loan Volume Continues To Drop, But Historic Opportunity For SBA Borrowers Remains


CONTACT: Daniel Son Email | Phone 202.822.1207

 

WASHINGTON, DC, September 12, 2013 – The National Association of Development Companies (NADCO) monthly Small Business Lending Report (SBLR) showed a drop in commercial real estate and equipment finance loans to small businesses for the month of September.

There were 482 loans finalized for September (as compared to 504 in August), which is more than 20% under the 12-month average of 606 loans. A year ago there 684 loans. The 20-year monthly loan pool size was $313,427,000 -- below the 12-month average of $403,200,000 and a 36% drop from $495,038,000 a year ago. This month's debenture rate is 3.62% compared to 2.2% a year ago, but still much lower than the historic average of 6.36%.

 

Rates have been rising over the past four months, stemming from concerns that the Federal Reserve will begin tapering their monthly bond-buying program. Home mortgages exhibited parallel declines, with home mortgage lenders reporting a 13.5% decline in the week ending Sept. 6 from the previous week, according to the Mortgage Bankers Association.



As part of the JOBS Act of 2010, small businesses in good financial standing were enabled to refinance their old, expensive debt locked up in their property and use the savings to reinvest in growing their businesses through the Small Business Administration's (SBA) Real Estate Advantage (504) Loan Debt Refinance program. "Debt Refi" was enacted as a temporary program and during that time more than 2,700 businesses were helped and 400 applied for the program on the last day of its trial. NADCO has been a consistent advocate for its renewal and extension.

"It's clear that the lack of Debt Refi is having an impact on loan volume," said Beth Solomon, President & CEO of NADCO. "The reality is that this initiative helped more than 2,700 small businesses unleash nearly $7 billion in capital to invest in their businesses that had been locked in their own property. In some cases, companies were able to save tens of thousands of dollars that they used to create or preserve jobs and grow their businesses. Debt Refi needs to be reinstated to boost America's fragile economic recovery."

Legislation passed by the Senate Committee on Small Business and Entrepreneurship would reinstate the program permanently at no cost to the taxpayer.





Small Business Lenders Gather Near Tornado's Deadly Path


Oklahoma City, Aug. 19 - Three months after a devastating tornado struck Moore, Oklahoma and adjacent areas on May 20, killing 23 people and injuring 377, Oklahoma City will draw hundreds of small business lenders and government officials from the region and the nation as part of the 19th Annual Mid-America Lender's Conference with a focus on small business lending and investment.

The conference will be attended by acting Small Business Administration (SBA) Associate Administrator Patrick Kelley as well as SBA Regional Administrator Yolanda Olivarez. Debbie Partin, Vice Chair of Legislative Affairs for the National Association of Development Companies (NADCO) and the Oklahoma Association of Government Guaranteed Lenders (OKAGGL), said the conference will help focus attention in an area that is rebuilding."

We are very pleased to host hundreds of the nation's top SBA lenders at this important time," Partin, Director of REI Business Lending, said. "Drawing small business lenders to this area will boost our efforts and provide lenders with additional training and relationships that can make a difference across the nation."

Recent indices, including NADCO's Small Business Lending Report, show small business lending slowly recovering -- matching the national economy's uneven progress.

Commercial real estate lending, a key barometer of small business health measured by the SBLR, showed 504 loans finalized in August, compared to 590 in July and 539 in June.

The Conference will be held at the Renaissance Oklahoma City Convention Center and the Cox Convention Center August 18-20.



NADCO Praises SBA Capital Access Appointment


WASHINGTON, July 10 - The National Association of Development Companies (NADCO) today praised the appointment of Ann Marie Mehlum as Associate Administrator of the Office of Capital Access at the U.S. Small Business Administration. Mehlum, a longtime community banker, is founder and Director of Summit Bank, a Eugene, OR community bank providing services for small-to medium-sized businesses and professionals.

"As a longtime community banker, Ann Marie Mehlum will bring the leadership and experience the nation’s small businesses need at the SBA,” said National Association of Development Companies President & CEO Beth Solomon. "At a time when capital access continues to be a challenge for small businesses, Ms. Mehlum’s understanding of the obstacles first-hand will be invaluable in our continuing joint efforts to expand credit to America’s job creators.

As a member of the FDIC’s Community Bank Advisory Council appointed by Chairman Martin Gruenberg, Mehlum has also had experience in financial regulatory affairs. She will replace Associate Administrator Jeanne Hulit, who also served as Region I Administrator."
Administrator Karen Mills has done a superb job bringing top talent to the SBA, and Jeanne Hulit is Example #1,” Solomon said. "Jeanne’s steadfast leadership in reducing red tape, increasing agency effectiveness and expanding capital flow to small business has been unprecedented. While she will be greatly missed, we look forward to working closely with Ann Marie Mehlum and the SBA team to build on the remarkable progress that has been made during Administrator Mills’ tenure.

Mehlum started her career at Wells Fargo Bank following an MBA from the University of California, Berkeley, and a bachelor’s degree in economics from Pacific Lutheran University. She has held leadership roles in the Oregon Bankers Association, the International Women’s Forum, and the Eugene Area Chamber of Commerce, and was appointed by Oregon Governer John Kitzhaber to serve on the Oregon Growth Board.



Small Business Lending Roadshow Rolls On With Salt Lake City Event


Salt Lake City, UT – The National Association of Development Companies (NADCO) continued its Small Business Lending Roadshow, a nationwide push to raise the visibility of Certified Development Companies (CDCs) and the important work they do in giving small businesses the access to capital they need to grow and hire, with an event today in Salt Lake City, Utah. This Small Business Finance Roundtable was hosted by NADCO member Mountain West Small Business Finance.
The focus of the roundtable was to hear directly from small businesses about smart policies that will help foster economic growth and job creation, like the SBA's 504 debt-refinancing, a bipartisan public-private partnership. Representatives from five of the six federal elected officials were also in attendance.

NADCO will continue to hold events like these all around the country.



SBA Recognizes NADCO Members as CDCs of the Year


Washington, DC – The National Association of Development Companies (NADCO) is delighted to congratulate its members who were recognized by the Small Business Administration (SBA) as the certified development companies (CDCs) of the year.

The CDC of the Year whose portfolio is $50M or less is Community Development Resources located in Nebraska.

The CDC of the Year whose portfolio is greater than $50M Wisconsin Business Development located in Wisconsin.

"We are extremely proud and grateful for the SBA's recognition of the important work of Community Development Resources and Wisconsin Business Development, representing our nation's SBA Certified Development Companies (CDCs)," said Beth Solomon, President & CEO of the National Association of Development Companies (NADCO). "Each day, they, along with other CDCs, are fueling small businesses as they sustain and create the jobs America needs."

Joe Wolfe, President of Wisconsin Business Development said: "CDCs, along with our SBA and lending partners, work with some of the country's bedrock small businesses to foster innovation and community impact. We appreciate this recognition and remain focused on our critical mission of creating and sustaining jobs on behalf of the entire CDC family and partners. Working together we help keep America working."

"I think, personally, that SBA’s 504 loan program is the best economic and financial tool to sustain and grow businesses in the U.S.," added Rick Wallace, Executive Director of Community Development Resources. "Our leadership in America needs to permanently extend the debt refinance program, which is vital to allow our businesses to grow and prosper and create jobs.

"We thank Administrator Karen Mills and the SBA team for their leadership and support of the US economic recovery and our nation's #1 job creators -- small businesses in communities across the land," concluded Solomon.



SBA Lending to Franchises Jumps 60% According to New Industry Report


New York, NY – A new report released at the start of the International Franchise Expo in New York City shows that U.S. Small Business Administration (SBA) lending to franchising increased more than 60% over the previous year, shrinking a credit access gap that has been the focus of industry efforts since the financial crisis.

The report, co-authored by the Coleman Report, the National Association of Development Companies (NADCO) and the International Franchise Association (IFA), showed that nearly 3,300 SBA loans went to franchises in 2012 for a total of over $3.8 billion, an increase of 34% in number of loans delivered and a 60% jump in dollar volume.

SBA financing for commercial real estate, equipment and leasehold improvements known as "504 loans” increased even more -- 67% in 2012 to $2.5 billion in total project finance. 504 loan volume nearly doubled between 2010 and 2012, while 7(a) volume ticked up nearly 12%.

"The dramatic increase within the SBA 504 commercial real estate and equipment loan and 7(a) programs demonstrates the continued ability of the franchising industry to create jobs and generate economic growth,” said IFA President & CEO Steve Caldeira. "While there are clearly still some gaps in accessing capital, especially for the first-time entrepreneur, IFA’s ongoing efforts to better educate the lending community about franchising, has led to significant progress for our industry since the recession.

 

"Larger loan sizes supported by NADCO, IFA and SBA as part of the Jobs Act of 2010, combined with our joint franchise lending campaign, have enabled us to nearly double 504 loan volume to franchising since 2010,” said NADCO President & CEO Beth Solomon, representing the nation’s 270 SBA Certified Development Companies (CDCs), which facilitate small business loans. "We are very pleased to see the franchise industry getting financing to create the jobs America needs.” Each $65,000 in 504 loan volume creates one job.

Franchising was a major user of 504 loans, securing nearly 15% of the total $2.5 billion 504 project finance volume and 9.5% of the number of 504 loans delivered. The franchise industry captured just over 9% of 7(a) loan volume, or about 5.3% of all 7(a) loans.

The brands receiving the most SBA loans 2010-2012 were Subway (573), Dairy Queen (182), Jimmy John’s (176), Dunkin’ Donuts (166), Anytime Fitness (154), Choice Hotels (136), Sport Clips (130), Ace Hardware (125), Days Inn (119), Little Caesar’s Pizza (112), Culver’s Frozen Custard (108) and Holiday Inn Express (107).

The Franchise Finance Top 50 brands in terms of SBA loans secured since 2010 are HERE.

"SBA loans have become increasingly popular as a franchise finance solution,” said Coleman Report CEO Bob Coleman. "The smartest franchise concepts are the most aggressive in employing this powerful franchise expansion tool.

NADCO is hosting the first-ever "Bank Financing Pavilion” at the International Franchise Expo June 20-22, an event expected to draw 15,000 visitors. At the Pavilion, New York Business Development Corporation, New Jersey Business Finance Corp., Bank of America, Citibank and TD Bank will offer SBA financing options to potential and existing franchisees as well as brand development leaders to further increase SBA lending to franchising.

The 504 loan is a 10% down, 10- or 20-year fixed rate loan up to $5.5 million. The 7(a) working capital loan up to $5 million may be variable or fixed-rate, short- or long-term.



NADCO Praises Senate Committee For Passing Bipartisan Small Business Legislation


Washington, DC – The Senate Committee on Small Business & Entrepreneurship led by Chairman Mary Landrieu (D-LA) and Ranking Member Jim Risch (R-ID) today approved legislation to return a pro-small business commercial real estate loan program to zero subsidy and to reinstate on a permanent basis a popular debt refinancing provision for small enterprises that had expired last year.

The legislation would impose fee requirements on SBA Certified Development Companies, which deliver small business commercial real estate loans known as "504” loans, to more rapidly return the federal program to zero subsidy in the federal budget, a status it had held before the financial crisis and the resulting collapse of the commercial real estate market in recent years.
The 504 debt refinancing provision, which enabled 2,700 small businesses to refinance $7 billion in old, expensive debt during a temporary period as a result of the 2010 Jobs Act, would be made permanent. It is estimated that reinstating debt refinancing could enable tens of thousands of small businesses to free up capital locked in their facilities to create and retain jobs.

"Sens. Landrieu and Risch have reached across the aisle to advance landmark legislation that will reduce the deficit, create jobs and enable small businesses to access the capital they need to accelerate the U.S. economic recovery,” said National Association of Development Companies (NADCO) President & CEO Beth Solomon. "This bipartisan, fiscally responsible, pro-jobs and pro-small business effort is a model for the Senate and our entire government to follow.”

more Calendar

1/30/2014 » 12/19/2014
NADCO Credit Risk Institute: Introduction to Financial Statements

2/28/2014 » 12/19/2014
NADCO Credit Risk Institute: Accounting Principles for CDC Analysts

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