October/November 2012 Edition
Link Up With Bringing You Low Fixed Rates And 4S 0 5 A HT
SBGHLIG HI
An Experienced Lending Partnership!
We Are Very Excited To Introduce The Newest Member Of Our ASBC Team...
David Chunn VP/Business Development Officer
David Will Be Working To Develop New Relationships With Lenders And Small Businesses, Focusing On The O. David Chunn, Jr. Greater Birmingham/North Alabama Markets. For More Information About The SBA 504 Loan Program, Please Give V.P./Business Development Officer Cell:(205) 306-1888 David A Call And Take Advantage Of Our Low Fixed Rates. Email: david@asbc504.com
“Winner of the Excellence in Lending Award!”
____ Current Rates:
4. 3.
262%
October 2012
20 Years Fixed •••
487%
____
10 Years Fixed SBA 504
HIGHLIGHTS
We Need Your Assistance…
Request to Congress for 504 Temporary Refinancing Program Renewal Congress did not extend the 504 Temporary Refinancing Program prior to its 9/27/2012 expiration date. Due to extraordinary volume growth and loan package submissions to the SBA Loan Processing Center, about 400 loan packages were not processed. SBA simply did not have the capacity to handle this volume in the last days of the program.
It’s clear that there is increasing demand for refinancing that can qualify for this program. Our National Organization is making a strong effort to get this program renewed during the “lame duck” session of Congress that will begin after the November elections.
We need your help to be successful. Please click HERE to find a “talking points” document that provides information that you can transfer into communications on your letterhead and emails to your Senators and Representatives to support renewal of the Temporary Refinancing Program.
Many CDCs had loans applications that did not get processed, and they want to find a way to still assist these small businesses. If we are successful, SBA could re-open the program if Congress passed language to renew it in November or early December.
Please help us by contacting your Congressional Members on the value of the program for your communities.
SBA Loan Dollars in FY 2012 Reach Second Largest Total Ever! $30.25 Billion Second Only to FY 2011 504 Loans Set All-Time Record in Dollars Loaned- Streamlined Products Led to Jump in Usage WASHINGTON – With loan volume steadily increasing for the past six quarters, the U.S. Small Business Administration’s loan programs posted the second largest dollar volume ever in FY 2012, supporting $30.25 billion in loans to small businesses. That amount was surpassed only by FY 2011, which was heavily boosted by the loan incentives under the Small Business Jobs Act of 2010. Overall, the pace of SBA loan-making is a healthy sign for the economy and the credit markets and is one of the foundations for ensuring the availability of financing to small businesses trying to establish themselves, grow and create new jobs for Americans. The near-record pace was driven in part by a record year for the Certified Development Company (504) loan program, which supported $15.09 billion in small business credits. The strong performance of 504 loans was boosted by the temporary 504 refinancing program, which was responsible for 26 percent of the 504 program loans made in FY 2012 and 34 percent of the dollar volume. The recently expired 504 refinancing program was part of the incentive package under the Jobs Act. “Reaching such strong numbers is a clear sign that both the business and lending communities are regaining their confidence in the
economic climate of the country,” said SBA Administrator Karen Mills. “It means that the credit markets are increasingly willing to help small businesses establish themselves, grow and create new jobs for Americans.” Over the past year, SBA began streamlining and simplifying many of the loan programs in order to provide more access and opportunity for both lenders and small businesses. As part of this effort, SBA encouraged lenders to use more of their own paperwork and the agency’s updated processing systems, so that more than 80 percent of its loan applications can now be processed online. The reengineered CAPLines loan program recorded an increase of almost 400 percent in loan volume and 249 percent in dollar volume. The revamped program, which provides working lines of capital to small businesses such as manufacturers and government contractors, jumped from 108 loans and $118 million in FY 2011, to 532 loans and $410 million in FY 2012. SBA’s streamlining of the Small Loan Advantage (SLA) and Community Advantage programs also produced encouraging results. The Advantage loan programs entice lenders to make low-dollar loans, which are an important tool for small businesses. Community Advantage jumped from 15 loans and $2.1 million in FY 2011, to 188 loans and $25.2 million in FY 2012, an 11-fold increase in both the number of loans and dollar amount. As of the end of May 2012, SLA had
a volume of 188 loans for a little over $20 million. The program ended the fiscal year with 820 loans for $105.6 million. Nearly 80 percent of the year’s SLA loans came after SBA implemented simplified processes on June 1. These efforts, among other loan enhancements, have resulted in nearly 1,300 lenders returning to SBA lending, and have opened up more points of capital access for small businesses wherever they do business. During the fiscal year, which ended Sept. 30, SBA loan approvals supported $30.25 billion (53,848 loans) to small businesses in its two main loan programs, 7(a) and 504, compared to $30.5 billion (61,689 loans) in FY 2011 and $22.6 billion (60,771 loans) in FY 2010. The totals for FY 2012 include 44,377 loans, $15.15 billion approved under the agency’s largest loan program, the 7(a) General Business Loan program, and 9,471 loans supporting $15.09 billion in small business lending under the 504 Certified Development Company program. The “supported” amount for 504 loans includes the SBAbacked portion and the third-party loans made by commercial lenders as part of the funding package. For more information about these and other SBA programs, visit the SBA website at www.sba.gov, or contact your local SBA field office. You can find contact information for your local SBA office at:
http://www.sba.gov/localresources/index.html
PrREPORT ogr ess
2011-2012 Loan Production
Alabama Small Business Capital (ASBC) and the entire FBDC group records another banner year-
Alabama Small Business Capital (ASBC) and Florida Business Development Corporation (FBDC) is the #2 Certified Development Company (CDC) in the U.S. as of September 30, 2012! For the fiscal year ended 9/30/12, ASBC and the entire FBDC team achieved the status of #2 CDC in the U.S. with the second highest number of SBA 504 loan approvals. With 488 total SBA 504 loan approvals in 2012 loan volumes broke down as follows:
FLORIDA ..............408 GEORGIA ...............42 ALABAMA..............36 TENNESSEE ............1 S. CAROLINA...........1
These approvals provided over $303,000,000 in SBA 504 loans to small businesses and with the help of our lending partners, FBDC provided over $687,000,000 to small businesses.*FBDC received the Outstanding CDC Lender 2nd Highest Number of Loans Award for FY 2011 as
New Construction
recognized by the National Association of Development Companies. -ASBC does not require a $2,500 upfront borrower deposit -The FBDC servicing fee on SBA 504 loans is 0.625% -ASBC offers “ONE STOP SERVICE�.
$687 Million Loan Volume*
Our staff has extensive experience in all aspects of the SBA 504 program working primarily in the State of Alabama while also serving the needs of our lending partners in Georgia and the Florida Panhandle. We look forward to working with you on SBA 504 financing opportunities and appreciate your decision to continue to work
Building Purchase
Over
with ASBC, your source for SBA 504 lending.
Machinery & Equipment Building Renovations
u r T O e t a e m e ! M Angie Sweatman Vice President Cell:(334) 318-8064 angie@asbc504.com
Brian Swann
AVP/Underwriter Cell:(334) 332-0976 brian@asbc504.com
O. David Chunn, Jr. VP/Bus. Dev. Officer Cell:(205) 306-1888 david@asbc504.com
Debbie Parnell
Closing/Funding Manager Cell:(334) 328-9520 debbie@asbc504.com
Alabama Small Business Capital Assisting Small Business Owners in Alabama, Georgia and Florida 3120 Frederick Road, Suite K, Opelika, Alabama 36801 Office:(334) 275-9700 • Fax:(334) 275-9704
Home Of NO Upfront Fees and NO Borrower Deposits!
Important Links:
ASBC www.fbdc.net
U.S. SBA YOUTUBE www.youtube.com/user/sba ALA SBA RESOURCE GUIDE
www.smallbusiness3.com/pdf/english/alabama.pdf
ALA ASSOC. OF REG. COUNCILS www.alarc.org GEORGIA SBA RESOURCE GUIDE
www.smallbusiness3.com/sites/default/files/guide-pdf/english/georgia.pdf
N. FLORIDA SBA RESOURCE GUIDE www.smallbusiness3.com/pdf/english/florida-north.pdf
U.S. SMALL BUS. ADMIN. www.sba.gov
SMALL BUS. DEV. CENTERS: www.asbdc-us.org SCORE www.score.org
ALABAMA SECRETARY OF STATE www.sos.state.al.us GEORGIA SECRETARY OF STATE www.sos.ga.gov FLORIDA SECRETARY OF STATE www.sos.ga.gov