Midwest Business Capital Closes Fifth SBA 504 Loan Pool
Midwest Business Capital (MBC) closed its fifth Small Business Administration (SBA) loan pool making MBC one of the most active users of a program that facilitates small bank origination of SBA 504 loans. The program provides liquidity for community banks by creating a secondary market for the sale of 504 loans. This liquidity enables banks to fund additional small business loans that promote job growth and economic expansion.
Dick Witherow, president of MBC, said, “The SBA 504 pooling program has allowed MBC to significantly increase our origination of SBA 504 loans that have been used for small business expansion and the refinance of existing commercial mortgages. Without the ability to sell these loans in a secondary market created by the 504 pooling program we would not have been able to make these loans to assist these small businesses. Many small businesses have been unable to refinance their mortgages due to the pull back of conventional lending for commercial mortgages. The 504 program has been a lifesaver for many of these businesses.”
The SBA 504 pooling program is scheduled to expire this September. MBC said it is encouraging Congress to extend the program, which will facilitate community bank origination of SBA 504 loans.
Midwest Business Capital, a division of United Midwest Savings Bank, specializes in providing owner occupied real estate financing using SBA programs. MBC also specializes in dental and medical practice and funeral home lending.