Lending to small businesses in California may be on the rise, according to a recent report from TMC, a leading Certified Development Company that provides U.S. Small Business Administration 504 real estate loans.
According to TMC, SBA-backed lending to small businesses grew by 140 percent for the first fiscal quarter - which ended on December 31, 2010 - compared to the same time the year before.
The volume of SBA-backed real estate loans places TMC at No. 2 in the nation and provides a bit of encouragement for entrepreneurs looking to incorporate in California.
"With the availability of 90 percent financing and legislative changes which expanded the reach of the SBA 504 program, overly cautious lenders were encouraged to lend again," said Barbara Morrison, CEO and founder of the company. "Business owners were empowered to transition from leasing to owning, or to expand into a larger work space."
"With the help of TMC to secure SBA financing, these businesses are also expecting to create approximately 657 jobs as a direct result of their new funding,” Morrison added.
However, the availability of credit has been a major problem in the Golden State, contributing to high unemployment and an even more pressing budget deficit. Last month, the California Reinvestment Coalition reported that small business loans from Bank of America, Citibank and Wells Fargo shrank 64 percent from 2007 to 2009.
Tags : ca, financial management, small business management
Posted: Feb 16th, 2011