SBA 504 Loan Program's Record Low Interest Rates Could Lead to Recession Recovery for U.S. Small Businesses

FOR IMMEDIATE RELEASE
(Free-Press-Release.com) October 22, 2009 -- ALTAMONTE SPRINGS, Fla. --- Record low interest rates available through the U.S. Small Business Administration’s (SBA) 504 loan program could play a major role in leading small businesses out of the recession, says longtime banking executive Geof Longstaff.

Longstaff is chairman of Mercantile Capital Corp., one of the nation's leading providers of SBA-504 loans for small business owners who want to acquire or develop their own facilities.

"SBA 504 is offering a 4.89 percent interest rate in October with 10 percent down and 20-year terms. This is the first time the rate has ever been below 5 percent," Longstaff said.

"Banks like them because the default rate is among the lowest in the lending industry. Borrowers like them because low interest rates, only 10 percent down payment and favorable terms help keep capital in the business and create new jobs," Longstaff added.

Chris Hurn, chief executive officer of Mercantile Capital Corp. said the Altamonte Springs-based firm will likely end the 2009 fiscal year with $40 to $50 million in new SBA 504 loans.

"We are down slightly from last year but we anticipate a big recovery in November and December," Hurn said.

"The economy is improving and we are seeing more loan inquiries from small business owners who see that now is the time to expand their assets," Hurn said.

* * *

For more information contact

Geof Longstaff, Chairman, Mercantile Capital Corporation, 407-786-5040
Chris Hurn, CEO, Mercantile Capital Corporation, 407-786-5040
Shannon D. Marks, President/COO, Mercantile Capital Corporation, 407-786-5040
Larry Vershel, Larry Vershel Communications 407-644-4142

low interest rate     SBA 504 Loan     small business administration