2025: THE YEAR IN REVIEW

Is it just us or does December seem to roll around faster and faster each year? The last twelve months have been a bit of a rollercoaster for many, but every bump and plot twist delivers a chance to learn and grow. We write this year-end recap grateful for those lessons and for the opportunities we’ve had to collaborate with so many of you along the way.

SBA Delivers Wins for Small Businesses
One of the biggest announcements from the SBA this year is that the 504 upfront fee and annual service fees for manufacturers with NAICS Code 31-33 will be waived in fiscal year 2026. The upfront fee is 2.15% and the ongoing fees paid by the borrower as part of their monthly payment will be reduced by approximately 21bp. For manufacturing companies, this reduction offers some big savings!

The SBA also reports a record in capital delivery to small businesses in 2025. A total of $7.8 billion in SBA 504 loans has been provided to small businesses across the country, giving them the resources they need to purchase commercial real estate, equipment, and more. This funding also creates new, local jobs which strengthen local economies. Bay Area Development Company is pleased to play a key role – along with our many lending partners – in delivering SBA 504 financing. Together, we are helping small businesses throughout California grow and create new opportunities in their communities.

Small Business Pulse Check
2025 was challenging for many small business owners, with inflation and supply chain issues topping the list of factors causing concern. Despite that lingering uncertainty, over 1.3 million entrepreneurs filed new business applications in the second quarter, up just over 1% from Q2 2024. The construction and clean energy industries are among those that saw growth this year, and healthcare continues to be a very strong sector.

Across all industries, we are inspired by each person who decided to turn their dream into a company in 2025, and we are cheering for their long-term success. This holiday season, and throughout the year, we encourage you to shop small and local whenever you can – and encourage others to do the same! These businesses bring tremendous value to your corner of the world, and your support makes a world of difference.

Wishes from the BADCO Team
From all of us at Bay Area Development Company, have a wonderful holiday season and cheers to a bright and prosperous new year!