U. S. SMALL BUSINESS ADMINISTRATION RECOGNIZES BIG SKY EDC’S LOAN OFFICER – BRANDON BERGER
Citing outstanding performance, the U.S. Small Business Administration [SBA] state director, Michelle Johnston, congratulated the Big Sky Economic Development Corporation, an SBA Certified Development Company [CDC], and in particular their loan officer, Brandon Berger, on securing 14 SBA 504 loans for a total of $10,012,000. This is a record for the highest dollar volume for a CDC in Montana. [SBA Fiscal Year 2008 – October 1. 2007-September 30, 2008].The primary focus of the program is job creation and retention. These loans resulted in over 170 new jobs created and over 50 retained.
The SBA 504 program is a long-term financing tool used for economic development by eligible small businesses. The program provides fixed rate financing for major fixed assets, such as land and buildings. The typical structure for an SBA 504 loan is 50% financed through a private lender, 40% through SBA and the CDC, and 10% owner’s contribution.
With loans becoming more difficult to secure and many requiring 30% or more down, the SBA 504 is a good deal for the borrower and the lender who has that 40% guaranty from SBA.