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|More than 980 Indiana companies help SBA 504 program reach $50 billion in private sales to support small business loans
A popular federal small business financing program reached a significant mile marker this week: $50 billion raised in private funds by debenture sales to support loans from the U.S. Small Business Administration 504 program.
The leading Indiana SBA 504 lender, the Indiana Statewide Certified Development Corporation, contributed $377 million to the total through debenture sales to fund more than 980 Indiana businesses.
The SBA's first debenture sale for its 504 program occurred 25 years ago, in November 1986.
"This is a big milestone," says Jean Wojtowicz, executive director of the Indiana Statewide CDC. "It is important not only because of the $50 billion dollar amount, but because it represents a successful federal small business financing program that helps people work and support their families."
Very few federal dollars are spent on SBA 504 loans. The privately funded debentures are guaranteed by the SBA and represent more than one-third of the total funding of $130 billion in fixed asset financing to 109,245 companies creating or saving 2.5 million jobs. The Indiana Statewide CDC's contribution is equally impressive: $377 million in debenture sales and $944 million of fixed asset financing for more than 980 companies, creating or saving 26,500 jobs.
Most SBA 504 financing dollars come from commercial lenders and the down payments made by borrowers.
Indiana Statewide CDC works with local lenders to provide SBA 504 loans to owners of expanding Indiana companies. Congress created the SBA 504 program so owners of small businesses could get long-term, fixed rate financing with lower down payments that is similar to financing available for large companies.