Are We Finally Turning the Corner on This Economy?
A Message from NADCO President, Chris Crawford:
Needless to say, we are all hopeful that the economy – and the demand for 504 loans – have finally hit bottom and the economy will rebound as things begin to improve in the coming months.
Here’s an interesting statistic: Since our last Annual Meeting, CDCs have funded 7,458 loans for over $4.4 billion. At $50,000 per job (which many of our projects actually beat), your 504 projects have created or retained almost 90,000 jobs at a time when America really needs those jobs.
What other economic development program can match those statistics? Answer: None!
504 is temporarily down, but you are still closing loans and creating more jobs than any other economic development program! And remember, add to these loans another $5.5 billion in bank first mortgage loans, and all together your projects put about $10 billion in long term capital to work for those 7,458 borrowers.
As for the future, when I talk to CDCs and your bank partners around the country, I hear a good deal of unanimity on what will happen as borrower demand for fixed asset financing picks up: banks and borrowers are going to turn to 504 for their long term financing when they start expanding again.
To learn more about NADCO, please visit www.nadco.org.