OAKLAND, CA-Small businesses in the Bay Area and Sacramento are warming up to buying their own buildings using SBA financing, according to CDC Small Business Finance.

In fourth quarter 2013, total financing using the SBA-504 loan program more than doubled, from $32 million in October to $73 million in December.

“Small businesses appear to be rallying back after the federal government shutdown in October,” said Ed Ryan, Sacramento Valley loan officer for CDC, the nation's leader in SBA-504 loans.

While only 16 SBA-504 loans were approved in October in the Bay Area and Sacramento combined, approvals jumped to 27 in November and 37 in December.

SBA-504 loans, provided in partnership between certified development companies and banks, help small businesses finance the construction or purchase of commercial/industrial buildings as well as large equipment. The most active banks in SBA-504 lending last quarter were JP Morgan Chase, Bank of the West and Union Bank. The largest single SBA-504 loan approved was $20.8 million.

“Rates continue at historic lows for this fixed-rate financing,” said Kelly Ryan, Bay Area loan officer for CDC Small Business Finance. “Small business owners should take advantage now before rates rise with an improving economy.”

The current rate is 5.53% for this type of financing, which helps small businesses finance long-term fixed assets such as commercial real estate and large equipment. Several Northern California businesses have taken advantage of the SBA-504 loan program to buy their own building, preserve cash and build owner equity.

CDC Small Business Finance has helped more than 10,000 entrepreneurs transition from leasing space to owning their own facilities. Small business owners can find out if they qualify for an SBA-504 loan by using the firm's Prequalify Today tool.

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Small Businesses Buying Their Own Properties

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