LOOKING BACK…AND AHEAD

The Big World of Small Business

According to the Small Business Index Q3 presented by the U.S. Chamber of Commerce and MetLife, small businesses are feeling optimistic as the year comes to an end. Seventy-three percent of small business owners expect next year’s revenue to increase – the highest number recorded since the Index began in 2017! And, while more than half of small businesses surveyed say inflation is their biggest concern, nearly 70% say they’re comfortable with their business’s current cash flow position.

Our friends at the SBA also report some positive statistics on the small business growth front. There have been more than 20 million new business applications filed in the last four years. That’s an average of 441,453 per month, which is 91% higher than pre-pandemic averages. Breaking down those numbers, Black business ownership has doubled, Latino business ownership is at a record high, and women-owned businesses are increasing at nearly twice the rate of male-owned businesses.

Small Business Administration Updates

2024 was also a good year for the SBA 504 program, and that is good news for those who leverage it. Earlier this year, a streamlined application process was launched. The result has been faster loan processing, which means small businesses can more readily access the capital they need to purchase equipment and commercial real estate.

In partnership with NADCO (National Association of Development Companies), the SBA also made VetLoan Advantage a permanent fixture. Through participating CDCs like Bay Area Development, this program offers additional cost savings to veteran-owned businesses that leverage SBA 504 funding. You can learn more about this program here

SBA also made some welcome changes to the SBA 504 Refinance program. Regulations have been amended for debt refinancing with expansion (for small business owners who want to refinance existing loans and use loan proceeds to expand their business) and debt refinancing without expansion (for small business owners looking to refinance their existing loans). In both instances, the refinance program is now more accessible to a much larger group of small business owners.

Bay Area Development Developments (see what we did there?)

Closer to home, Bay Area Development celebrated some important events this year. After approximately 30 years in the same Walnut Creek location, we moved our headquarters to Concord in January. The change of scenery has been refreshing and we have all managed to avoid driving to our old space out of habit.

We were also very pleased to welcome two new loan officers to our team this year. Isiah Alcantar joined in April as Senior Vice President & Market Manager for the South Bay. In September, Rich Hildebrand joined as Senior Vice President & Market Manager for the San Francisco and East Bay regions. We have also added to our bench by bringing Frankita Ruiz to our closing team and Eleni Caryotakis to our underwriting team. Their industry experience and deep roots in their respective communities are appreciated by our team and our clients.