Organization Sets New Record For Business Expansion Loans

Press Release

The Indiana Statewide Certified Development Corporation set a new record for small business expansion loans in fiscal 2007.

At its annual board meeting tonight (Dec. 13), the Indiana Statewide CDC will confirm that it provided $37,517,000 along with local banks to 66 projects for the year ending September 30. Total funding for the projects reached $103,538,588. The old funding records set last year were $35,469,000 to 69 projects and total funding from all participants of $99,479,979.

Indiana Statewide CDC partners with local lenders to provide loans from the U.S. Small Business Administration 504 loan program. Thirty-three different lenders worked with the Indiana Statewide CDC this year.

Jean Wojtowicz, executive director of the Indiana Statewide CDC says, “Many business owners tell us they could not have financed key expansions without our help. Even though we are an alternative lending program, many more of our borrowers succeed than fail. I think this is because business owners are optimists by nature. Otherwise they would not take the risk: expanding a business is a risk, no matter how well considered.”

Wojtowicz adds that she believes Indiana is on the right track. Major companies such as Honda and Wellpoint are proceeding with welcome expansion. “In addition, small high-tech companies partially funded by the Indiana Statewide CDC, such as Aerodyne Engineering in Indianapolis and e-biofuels in Middletown, are diversifying the industrial landscape of Indiana,” she adds.

Congress created the SBA 504 program to help small businesses gain favorable financing terms and retain operating cash while expanding. Indiana Statewide CDC has helped created or save more than 24,000 jobs in Indiana with SBA 504 loans since 1983.

“The SBA guarantees bonds that are sold to finance a portion of the loan, which allows us to offer a low, fixed interest rate for as long as 20 years,” says Wojtowicz. “The guarantee also allows borrowers to pay as little as ten percent down. The interest rate and down payment stipulations are better than those provided by conventional loans,” she adds.

Indiana Statewide CDC has helped create or save more than 24,000 Hoosier jobs with the SBA 504 program.

More information: www.cambridgecapitalmgmt.com

Source: Indiana Statewide Certified Development Corp.