ORANGE COUNTY, CA—Small loans ticked up appreciably during fourth-quarter 2014, according to Business Finance Capital of Los Angeles. The firm has been named the second-ranked provider of direct Small Business Administration 504 program loans in the Los Angeles County and Orange County/Inland Empire regions based on total dollar amount of loans closed.

“There has been a significant increase in SBA 504 loan activity during the fourth quarter of 2014,” says Jacky Dilfer, executive director of BFC. “Though building inventory remains tight, interest rates are still low, and the 504 program offers great advantages to business owners, especially on larger buildings. The outlook for 2015 is positive, particularly with expectations of short-term rates increasing.”

Dilfer reports that BFC closed $58.25 million in SBA 504 loans in SBA's Los Angeles district and $26.18 million in the Orange County/Inland Empire area during the firm's fiscal year 2014. Additionally, SBA data shows that BFC notched the highest average 504 loans in this district at $1.6 million.

Dilfer tells GlobeSt.com, “Orange County is a very strong SBA market producing 25%, nearly $1 billion of California's $4.4 Billion in SBA loan volume for 2014. (Please note that Orange County figures includes the Inland Empire as well.) Orange County's 504 production accounts for 5% of total SBA lending in California.”

While 504 activity increased in the fourth quarter, overall numbers for this segment are down year-over-year, Dilfer explains. “BFC had a 25% dollar volume decrease from FYE 2013 to FYE 2014 while the 504 industry as a whole had a 39% decrease primarily due to a sluggish economic recovery, and a few other factors: lending and borrowing is down nationwide, businesses are aiming to downsize and lower expenses by using less space, and historically low interest rates from competing loan products have contributed to the drop in SBA 504 numbers. When interest rates trend back to normal levels, 504 lending is expected to increase.”

Small businesses have been more prominent in the Orange County real estate market of late. As GlobeSt.com reported in October, Guthrie Development sold two units and had three others in escrow at Foothill Business Park, a 59,478-square-foot industrial property at 26429 and 26439 Rancho Pkwy. in Lake Forest, CA. The property is designed to accommodate small business owners, with 25 separate units ranging in size from 1,517 square feet to 3,203 square feet, with the opportunity to combine units to accommodate up to 8,199 square feet.