SBA 504 Loan____________________________________


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.


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.


If you have any questions regarding the SBA 504 Loan

 Program, please call Silverio Robledo at (818) 205-1770

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