The U.S. Small
Business Administration recently approved the
San Fernando Valley Financial Development
Corporation (SFV-FDC) to operate as a Certified
Development Company (CDC), which administers the
SBA 504 Loan Program. This program provides
growing businesses with long-term, fixed rate
financing for major fixed assets, such as land
and buildings. The SFV-FDC is the only SBA 504
lender in the Greater San Fernando Valley area.
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From
left: VEDC President, Roberto Barragan, Los Angeles
U.S. SBA District Director, Alberto G. Alvarado,
VEDC Board Vice-Chair, Pegi Matsuda and VEDC Board
Member, Marvin R. Selter |
The SBA 504 Loan Program
is designed to enable small businesses to buy their
own buildings with down payment as little as a 10%
and allows small business owners to purchase an
industrial or commercial building at/or 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 a
useful life of at least 10 years. The SBA 504 Loan
Program is a long-term financing tool used to help
stimulate economic development within a community.
Alberto G. Alvarado, Los
Angeles District Director for the U.S. SBA says, "We
are proud to welcome SFV-FDC to our family of CDCs
providing lending services to our local
entrepreneurs. SBA applauds SFV-FDC for their
expressed willingness to fund underserved businesses
in the greater San Fernando Valley to ultimately
create jobs and improve neighborhoods."
The SFV-FDC, an affiliate organization of the Valley
Economic Development Center, also administers the
California Small Business Loan Guarantee Program
with the support of the California Business
Transportation and Housing Agency. This 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 the Los
Angeles and Ventura County areas.
Roberto Barragan, President of the SFV-FDC says of
this distinction, "After over two years and
countless man-hours by dedicated staff, the Board of
Directors and I are proud to say that we have
achieved a five year dream, to become the first new
Certified Development Company licensed in almost 25
years in the Los Angeles region. Along with our
existing state guarantee program, we will seek to
support over $50 million in new lending over the
next year. We look forward to working with all area
banks including, national, regional, and de novo, to
provide SBA 504 lending to businesses seeking to own
their own building."
*Our current effective rate is 6.60%. Rate is
effective rate for the full term of the loan. Based
on pricing published by NADCO 10-7-08. Includes fees
to CDC, SBA, and central servicing agent.
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