FOR IMMEDIATE RELEASE June 13, 2013 CONTACT: Daniel Son: 202.822.1207 NADCO Introduces Monthly Small Business Lending Report Washington, DC – The

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June 13, 2013
CONTACT: Daniel Son: 202.822.1207

NADCO Introduces Monthly Small Business Lending Report

Washington, DC – The National Association of Development Companies (NADCO) is announcing a new, monthly Small Business Lending Report (SBLR), released the second Thursday of every month. This new report will offer monthly metrics on small business access to capital, job creation, interest rates and small business loan volume nationwide through the SBA 504 real estate and asset finance program.

Each month, NADCO will release average interest rate and loan volume. Combined and assessed historically, this will serve as a measure of the health of small business lending -- a core contributor to the health of the U.S. economy.

“Access to capital is critical for small business to create and sustain jobs,” said Beth Solomon, President and CEO of NADCO. “The Small Business Lending Report will offer valuable insight into how and to what degree small businesses are accessing finance and growth.”

“Small businesses create seven out of 10 of net new jobs in our economy, so we need to ensure that access to capital is strong, as well as where the gaps are and how to address them,” Solomon said.

June 2013

The chart above looks at the debenture rate, which is the rate at which bond investors receive principal and interest payments on a semi-annual basis. These investors are primarily banks, insurance companies and money managers. The lower the debenture rate, the lower the rate that borrowers pay to fund business investments and these low rates are locked in for up to twenty-years. The loan pool size, which is the actual dollar amount of loans funded for that month, is the second metric.

This month's debenture rate is XX % (up/down from 2.07% in May which is the second lowest in the history of 504 lending) for June. Monthly loan issuance was $XX, signaling a healthy demand and approval for capital.

“The continued uptick in lending is a good sign that small businesses are investing for growth and job creation and that access to capital is out there for businesses,” Solomon concluded.

Through the history of 504 lending, we have never seen so much access to capital, coupled with a low interest rate. By tracking and sharing this monthly report, NADCO will provide unique insight into the health of small businesses and their hiring. In addition, the SBA 504 loan requires every $65,000 of finance to create one job. Businesses securing 504 loans create 25% more jobs than non-504 businesses, according to the U.S. Census Bureau.



This is a measure that tracks, on a monthly basis, the loan volume for owner-occupied real estate and asset financing administered through the Small Business Administration's Certified Development Company (CDC) lending initiative (also known as the 504).


The 504 loan initiative is a self-funded long-term financing tool at no cost to taxpayers providing small businesses with long-term, fixed-rate loans with down payments as low as 10%. Certified Development Companies (CDC) work with the SBA and private sector lenders to provide financing to small businesses under the 504 loan program.


The National Association of Development Companies (NADCO) is the trade association of Certified Development Companies (CDCs) - nonprofit companies that have been certified by the Small Business Administration (SBA) to provide financing for small businesses under the SBA 504 Program. NADCO represents nearly 270 CDCs, serving all 50 states. In 2012, the industry provided $6 billion to nearly 10,000 U.S. small businesses.