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504
LOAN PROGRAM IS OPEN FOR BUSINESS
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LAFAYETTE,
LA (October 1, 2008) - LOUISIANA CAPITAL CERTIFIED DEVELOPMENT COMPANY,
INC. is assuring small business entrepreneurs and its lending partners
that SBA 504 loans are still available for qualified small businesses
during these turbulent economic times.
"The
credit crisis has not frozen the SBA 504 loan program and loans are
still available for businesses seeking to grow through real estate
acquisition, completing an expansion project for their existing
facilities, or needing to make large equipment purchases," stated
Louisiana Capital President, Andre Fruge. "Louisiana Capital Certified
Development Company, our banking partners and the SBA are doing business as
usual and will continue to do so for the long haul. 504 loans provide
a steady source of new long term capital at a fixed rate,
and frequently with only 10% down on a new project for small
businesses, helping to conserve cash for operating
expenses."
"A
vacant commercial property in a neighborhood can represent
an opportunity for a small business owner who needs more space. Now
may be the perfect time for small business borrowers to consider expanding
into a larger facility, or simply seizing the chance to buy that first
facility at an advantageous price,"
Fruge continued.
In
fact, the intent of SBA loans is to provide access to capital for small
businesses that might not otherwise be available through regular capital
market channels. When the economy is strong and access to capital is
relatively easy, there is typically less demand for SBA financing. Use
of the SBA 504 loan program becomes increasingly important as a
source of financing when traditional sources are not readily
available.
Funds
for the SBA 504 program come from the sale of long term bonds each
month. These bonds carry the full faith and backing of the U.S.
Government and present an attractive investment option for money managers,
pension funds, insurance companies, and other large institutional
investors. The sales of SBA 504 bonds have been successfully
conducted every month for the past 27 years. Fruge concluded,
"The amazing part about 504 is that it costs the Federal Government
absolutely nothing. There is no requirement for a Congressional
appropriation of funds for the 504 program, and there never has been."
For
more information about the program or to discuss a potential 504 project,
please contact Louisiana Capital CDC, Inc.
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   P. Andre Fruge, President & CEO
afruge@louisianacapital.com
Karen Angelle, Portfolio Manager
kangelle@louisianacapital.com
Emily Smith, Business Development Officer
esmith@louisianacapital.com
Please
contact our office by phone (337) 234-2977 or by email. We
look forward to hearing from you.
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