San Fernando Valley Financial Development Corporation Reports SBA 504 Loan Program Hits Over $5 Million

For Immediate Release Contact: Allison Miranda, VEDC (818) 907-9977 amiranda@vedc.org San Fernando Valley Financial Development Corporation Reports SBA 504 Loan Program Hits Over $5 Million Van Nuys, CA - The San Fernando Valley Financial Development Corporation (SFV-FDC) through its recently formed Certified Development Company has approved $6.4 million in SBA 2nd trust deed loans through July 2009. These SBA loans are part of total project volume in excess of $18.4 million that assisted small business owners in acquiring commercial buildings for their business use. As a result, the Los Angeles SBA District Office currently ranks the SFV-FDC #36 out of 124 SBA lenders in its first fiscal year of operation with two months remaining. The SBA fiscal year ends September 30, 2009. The SBA 504 loan program is designed to enable small business owners to purchase an industrial or commercial building at below-market interest rates. The loan may also be used to purchase or remodel an existing building, construct a new facility or to purchase equipment that has an economic life of at least 10 years. The SBA 504 loan program is a long-term financing tool for economic development within a community. Certified Development Companies work with the SBA and private-sector lenders to provide financing to small businesses. “The tremendous success of the SBA 504 program is one of those shimmers of hope we hear so much about in these challenging economic times, giving small businesses and the local economy the support to prosper,” said Ray Vasquez, SFV-FDC Board Chairman. “The San Fernando Valley continues to have a vibrant business community with entities like Community Development Corporations, micro-lenders and banks investing capital for commercial purchases and other critical business needs.” The SFV-FDC, an affiliate program of the Valley Economic Development Center, administers both the SBA 504 Loan Program and the State Loan Guarantee Program. The State Loan Guarantee Program enables businesses to obtain term loans, lines of credit or letters of credit for which they could not otherwise qualify. Since its inception, the SFV-FDC has secured bank loan guarantees for 164 businesses totaling over $30 million in loans, resulting in the creation and retention of 3,200 jobs in Los Angeles and Ventura County area. The SFV-FDC is the only Certified Development Company in the Greater San Fernando Valley. ###