SBA Rule Changes Will Enable FFC to Operate In All Counties

SBA's proposed changes to 504 program regulations will eliminate territorial monopolies in the 504 loan program, bringing true competition to every county in the state

Last year, SBA solicited comments on the loan program as part of an overall plan to improve the delivery of 504 loans to small businesses. Based on the comments and other information, the agency has proposed amendments to the regulations governing the program.

The most significant change impacts CDCs’ areas of operations. The proposal would establish the state in which a CDC is incorporated as the CDC’s minimum area of operations. Currently, each CDC is assigned a specific, local area, typically several counties.

When implemented, (likely before the end of 2003), this proposal would enable FFC to operate in every Florida county and give lenders and borrowers more choices and access to better customer service.

“We have been waiting for this change for many years,” said Todd Kocourek, FFC president and CEO. “We have consistently supported competition in the 504 program, both expanding our market territory and supporting expansion of other CDCs into our own. We (and others) are locked out of several major counties because of the current rules, and can’t wait to compete in Miami-Dade, Pinellas and Duval. The new rules will let the marketplace decide if there’s enough business for several CDCs in any given county.”

In addition, SBA proposes to amend the “job opportunity average,” which will permit CDCs to approve more projects that meet other statutory goals.