February 11, 2010

SBA-504 Volume Up In California

The number of SBA-504 loans approved by all certified development companies in California in January increased 11.8% compared to December '09, according to CDC Small Business Finance, the largest CDC in the nation.

Total loan units approved by all CDCs jumped from 93 in December to 104 in January. Total 504 debenture volume increased from $73.7 million to $80.7 million, December to January. Bank first trust deed volume climbed from $102.5 million to $115.6 million, respectively, a 12% jump.

In California, CDC Small Business Finance approved more than twice as many 504 loans (38 units, $30.8 million in debentures) in January as the next closest CDC.

"Month to month the gains are modest, but we're getting some traction in California," said Kurt Chilcott, president of CDC Small Business Finance. "When the secondary market opens up again, we're optimistic that 504 loan approvals will begin to accelerate."

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