$51.6 Million for Small Businesses during First Quarter

ORLANDO, Fla. - April 21, 2014 - PRLog -- Mercantile Capital Corporation (http://www.504experts.com/), which ranks as one of the leading providers of owner-user commercial real estate financing for small business owners via the U.S. Small Business Administration (SBA) 504 loan program, announced today that it closed 11 loans during the first quarter of 2014 for a total of $51.6 million in total project costs. This loan volume helped create 354 jobs in six states and is a 2.3% increase over the company’s 2013 first quarter numbers.

Chris Hurn, CEO of Mercantile, said that the diversity of loans provided during the first three months of 2014 is representative of SBA 504 lending, despite common misconceptions. “Of the 11 loans we closed in the first quarter, five involved construction, four were acquisitions, one was for equipment, and one was a refinance under the SBA’s 9-month rule,” said Hurn. The funded projects include a rock quarry, a water park and ski resort, three medical office facilities, a recycling plant, a gymnastics studio, and a boutique motel. “Each of these borrowers chose the SBA 504 loan over other options, and my hope is that the 504 loan will continue to become the first choice for more small business owners who want to purchase, construct, or renovate their commercial property,” Hurn added.

The largest loan by Mercantile in the first quarter was for a $12.1 million industrial facility for T.C. Millwork, Inc. in Bensalem, PA. This project allowed the company to consolidate its manufacturing, warehouse, and distribution processes under one roof and increase its efficiency.

With loan volume already up 2.3% over last year, Mercantile projects that it will top its 2013 numbers. “We beat our 10-year average by 77.3% last year,” said Hurn. “This year looks to be even better, which means small business owners are getting more confident about the economy and are making smart decisions for growth and expansion.”

About the SBA 504 Loan Program

The SBA 504 loan program allows small business owners to finance fixed assets (commercial real estate and equipment) with long-term, below-market, fixed interest rates. These loans are designed to finance the total project cost, including purchase price, construction/renovations, equipment, soft costs, and closing costs. A typical 504 loan project requires only 10 percent equity (down payment) from the small business borrower, with the remaining amount split between a first mortgage provided by a commercial lender and a second mortgage provided by a Certified Development Company (CDC). The program is self-funded and historically has been operated at a zero-subsidy status.

About Mercantile

Mercantile Capital Corporation, a wholly-owned subsidiary of Old Florida National Bank, is one of the nation’s leading providers of commercial real estate financing for small business owners via the SBA 504 loan program. As of March 31, 2014, Mercantile has closed 525 loans to fund projects worth more than $1.44 billion in 39 states, Puerto Rico, and the District of Columbia. A primary aim of the SBA 504 loan program is job creation and retention, and the company’s lending activity has helped create and/or retain a total of 9,757 permanent jobs since 2003. An industry leader for more than a decade, Mercantile has been on the forefront of efforts to grow the SBA 504 program by improving efficiencies and leveraging technology. Its SmartChoice® Commercial Loan Calculator smartphone app provides instant and accurate monthly payment estimates, and has been downloaded by more than 6,600 users.

For more information, visit www.504Experts.com and www.504Blog.com. For media requests and questions, contact Chris Hurn, CEO of Mercantile Capital Corporation, at 407-786-5040 or ChrisHurn@MercantileCC.com.