If you ask people to explain what the SBA’s 504 program does, they will probably say it provides below market, fixed financing so small businesses can purchase commercial real estate. It’s an accurate definition, but it only scratches the surface of how 504 funding positively impacts local economies. When we help clients buy a larger facility or add a new location, we know it means they are growing – and that almost always means they are bringing new jobs to their communities.

Large companies typically get most of the attention around employment news but when it comes to jobs creation, small businesses consistently beat the big guys hands down. A recent SBA study Small Business Facts: Small Business Job Creation ( revealed that in the last 25 years, small businesses have been responsible for two out of every three new jobs created. By the numbers, that’s 12.9 million net new jobs during that time period, while large corporations only created 6.7 million. With 28 million small businesses in the country right now, the opportunity for more growth is tremendous.

Bay Area Development recently published its latest annual report and we were proud to share that we helped to create 660 new jobs for small businesses across California between 2021 and 2023 alone. Seeing that number made us curious, so we did a little math and discovered the SBA 504 loans we have provided since our inception created an average of two jobs every day for the last forty years! There are nearly 200 Certified Development Companies (CDCs) like ours in the United States, working to make sure business owners have the funding they need to grow, so the impact we deliver collectively is exponential.

There’s no question that new jobs are critical to sustaining a strong economy, but it’s the people behind those jobs in those buildings that really make a difference. They pay local taxes, which support local needs and infrastructure. They give back through volunteering and mentoring, which enriches their community. They collaborate with and support other local businesses, which elevates all entities involved. And when small businesses succeed, that success inspires other entrepreneurs to start their own ventures…which results in the creation of more new jobs. We can’t think of a better cycle to repeat!

Start typing and press Enter to search