Stone Importer Carves Out Savings with a 504 Loan

Jun 2009

In today's uncertain economic climate, it is essential for small business owners to maximize working capital reserves to ensure they are ready for any possible situation that may call for “liquid” assets.

This reality weighs heavily on the business minds of Argemiro and Vany Andrade, owners of Ace Granite in Longwood, Florida. The company imports standard and exotic granites for developers and contractors in the Central Florida area. Originally from Brazil, the Andrade's moved their business here in 2001.

After leasing their 17,100 square-foot office/warehouse for several years, the Andrade's realized that ownership was the best course for their business and recently purchased the building thanks to the help of the 504 program.

“The 504 loan program was the perfect solution for the Andrade's,” said John Hanrahan, FFCFC Loan Officer and Vice President. “It allowed them to make the minimum down payment (10%) and preserve maximum cash for working capital and piece of mind.”

Even in a time of economic uncertainty, it is possible for small businesses like Ace Granite to thrive and expand if they are committed to making sound choices that enhance their growth strategies.

“Utilizing the 504 loan program provided the Andrade's with savings that allow continued asset management while preserving the working capital needed to capitalize on opportunities that lead to richer rewards for the their company,” said Hanrahan.

You can visit Ace Granite at http://www.acegraniteflorida.com.

For more information on Florida First Capital and its 504 loan program, visit www.ffcfc.com, email us at insider@ffcfc.com or call 888.320.5504.

Study Ranks Banks on Small Business Lending

The growth of small and microbusiness lending remained positive during the first half of 2008, although the expansion was slower than in the previous year, according to the latest edition of the Office of Advocacy's annual study of lending to small firms.

This new report, “Small Business and Micro Business Lending in the United States for Data Years 2007- 2008,” (http://www.sba.gov/advo/research/sbl_08study.pdf) gives a detailed account of small business lending overall, plus state-by-state totals and totals for individual lenders.

The study finds that for the year that ended in June 2008, the total value of small business loans outstanding increased 4% and the value of microbusiness loans outstanding increased 6.8%. Both rates were down from the previous one-year period, but they were still in positive territory.

The largest increase was in the number of microbusiness loans (under $100,000), which were up by 15.7%. This may be an indication that more loans are being made through business credit cards. The number of mid-sized loans ($100,000 to $1 million) fell by 23.3%.

The report uses the most recent Consolidated Reports of Condition and Income (Call Report) data for June 2007 to June 2008 and Community Reinvestment Act (CRA) data for 2007 to examine financial institutions' small and microbusiness lending. Small business loans in these data are business loans of less than $1 million and microbusiness loans are loans of less than $100,000. The report ranks lenders on their overall small business lending, not lending under SBA programs.

The full study, including expanded state-by-state tables, is available online at http://www.sba.gov/advo/index.html.

For more information on Florida First Capital and its 504 loan program, visit www.ffcfc.com, email us at insider@ffcfc.com or call 888.320.5504.