Barreto: SBA to Strengthen 504 Program

SBA Administrator Hector V. Barreto recently said that SBA is looking for ways to increase the number of 504 loans and improve the program.

In a teleconference last week, Barreto said that SBA wants to strengthen the partnership between SBA and Certified Development Companies like Florida First Capital. He said the agency is looking for ways to increase the number of 504 loans and is regularly holding roundtables and discussions with lenders and CDCs to find additional ways to improve the program.

“There’s still a lot of possibility for the 504 program,” said Barreto. “We want to strengthen our CDCs and work even closer with them.”

Contrary to rumors, Barreto also said that SBA is not promoting the creation of lender-controlled CDCs.

“The CDCs do a phenomenal job,” said Barreto. “We do not have any plans to change the formula. There’s an old saying: If it ain’t broke don’t fix it.”