Small biz slogs through the turmoil agency reports demand for SBA loans
Monday, December 01, 2008
Alan Hoambrecker has never been in the news before. But in times when the latest corporate layoff announcement often is the business news of the day, Hoambrecker stands out for the 30 jobs his small business is preparing to create.
Hoambrecker, a Kansas City food broker serving convenience stores, is preparing to open a convenience store of his own now that he has received approval for the $940,000 SBA 504 loan he applied for through the lending arm of the Economic Development Corp. of Kansas City.
Jeff Kaczmarek, CEO of the EDC, said deal flow through the agency’s redevelopment project pipeline has decreased to 25 percent of its normal rate. In contrast, small business remains a bulwark of the local economy, as evidenced by EDC Loan Corp.’s brisk SBA 504 business, Kaczmarek said.
Doug Nuckolls, executive director of EDC Loan Corp., said his pipeline of SBA 504 loan applications with a strong chance of closing had increased by 50 percent in November. Eight such loans, for projects with a combined value of $14 million, were in the pipeline on Nov. 21, when Hoambrecker learned that the U.S. Small Business Administration had approved his loan.
Source:http://www.bizjournals.com/kansascity/stories