Mercantile Capital Corporation, one of the leading providers of U.S. Small Business Administration 504 loan programme has reported a record number of loans in May of 2012. The programme allows business owners to gain guaranteed loans if they want to acquire or develop their own commercial properties. The company closed a total of 11 loans to provide financing for real estate projects which were valued at over $33.2 million (£21.2 million).
The company can count May of 2012 as its best month in its nine years of operation. Small business owners are looking for ways to make good financial decisions when it comes to obtaining commercial financing, and 2012 will likely be a record year for Mercantile Capital Corporation.
Since 1 January of this year, the company has arranged a total of 44 commercial loans, which is double the number closed by this point in the year in 2011 or any other year in which Mercantile Capital has been in operation. To put the number of loans closed during the first quarter into perspective, consider that the company closed a total of 57 loans in 2011.
The largest single loan Mercantile Capital funded in May was part of a deal to finance the acquisition of a hotel in Roslyn, New York. The total amount of the financing provided was $10.4 million (£6.6 million).
Many small business owners apply for funding from Mercantile Capital Corporation to refinance their current commercial mortgages to take advantage of lower interest rates and to obtain more favourable terms.
Under new financing rules, business owners can refinance commercial debt with SBA 504 loans. Companies which qualify for financing under this plan can get the benefit of improved cash flow as they grow and expand their business in the aftermath of the recession.
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