GTCC Recognized as Top Provider

The GTCC team recently received the 2016 Pinnacle Award from the North Texas SBA District for being the largest lender in dollar and number of units for the past fiscal year. The GTCC team that was in attendance to accept the award (L to R): John Hart,  Jason Carlile, Rhonda Goldthorn, Greg Dunn,  Jessi Crawford, Todd Buchanan, Judy Loden, and Chris Reynolds. GTCC is grateful to all of the lending partners they have worked with to be receive this award.

Congress Passes NADCO-Supported Program In Omnibus Bil

The SBA 504 Loan Refinancing Program (Officially known as the Commercial Real Estate and Economic Development (CREED) Act) was originally enacted as part of the Small Business Jobs Act of 2010. The program had a sunset provision that occurred in 2012. In the short period of time that it was active, it was responsible for refinancing $5 billion of debt for U.S. small business owners, with many more borrowers waiting for processing when the program expired.

Small business owners will now have more refinance options as many small-balance commercial mortgage-backed security loans will mature this year and in coming years.

It’s important to remember that the SBA 504 Loan Program is self-sustaining. It requires no appropriation of funds for fiscal year 2016, incurring zero cost to taxpayers.

Click here to read the official press release.

Congress Passes NADCO-Supported Program In Omnibus Bill

The following is a recent NADCO press release regarding debt refinance.

WASHINGTON, Dec. 18, 2015 /PRNewswire-USNewswire/ — The National Association of Development Companies (NADCO) congratulates Congress for passing the year-end omnibus, which permanently reinstates a popular debt-refinancing element to the SBA’s 504 loan program. This action will create jobs, allow small businesses to refinance debt, and let them re-focus on growing their businesses.

The bill, originally introduced to the House and Senate as the Commercial Real Estate and Economic Development (CREED) Act, permanently reinstates a program that existed for 16 months between 2011 and 2012, and helped more than 2,300 small businesses refinance $5 billion in debt. When the program “sunset” in 2012, it left 400 businesses in the pipeline awaiting approval as it expired.

“I’m glad we have been able to work in a bipartisan way to address one of the biggest challenges facing small businesses – getting access to credit so they can reach their full potential,” said Sen. Jeanne Shaheen (D-NH), ranking member of the Senate Small Business Committee. “I’m particularly grateful to my colleagues for working with me to pass the CREED Act, which will finally re-instate the SBA’s successful 504 Refi program to help small businesses grow and create jobs. Now that our legislation is on track to become law, this program will soon be up and running, helping small businesses thrive. Small businesses are the backbone of our economy and I’m very pleased that they will soon have this option for accessing affordable credit.” Sen. Shaheen, along with Sen. Johnny Isakson (R-GA), introduced the CREED Act in the Senate.

NADCO, the trade association for Certified Development Companies (CDCs) that make these loans, says the new product is valuable for expanding the program mission. “Debt refi is a fantastic tool to help CDCs in their economic development work. We are pleased Congress has brought back this valuable program,” said Claire O’Rourke, Vice President of Government Relations at NADCO.

“Extending 504 refinancing has been a top priority of mine throughout my time in Congress, and so I am thrilled that the language from my bill, H.R. 2266, has been included in the omnibus bill,” said Rep. Judy Chu (D-CA), who introduced the CREED Act in the House. “To meet our job creation goals, we must put more capital in the hands of job creators. Reinstating the SBA’s successful 504 refinancing program will do that by helping small business owners refinance billions of dollars in old debt at no cost to the taxpayer. This is a benefit to the entire economy. Now owners can focus their resources on hiring employees and growing their businesses.”

The passage is a result of bipartisan cooperation led by the House Chairman Steve Chabot (R-OH) and Ranking Member Nydia M. Velázquez (D-NY) from the House Small Business Committee, along with Senate counterparts Chairman David Vitter (R-LA) and Shaheen from the Committee on Small Business and Entrepreneurship.

“Letting small firms refinance debt through SBA’s 504 program will give them greater flexibility, freeing up their resources so they can grow stronger and create new jobs,” said Velázquez. “This is also important for CDCs, who now will have certainty when it comes to offering such a refinancing option to their small business clients.”

Sen. David Vitter (R-LA) said, “As chairman of the Senate Committee on Small Business and Entrepreneurship, I was glad to report out the extension of the 504 refinance program earlier this year on a bipartisan basis. Once the program is implemented by the SBA, I look forward to conducting strong oversight to ensure that this initiative meets its intended goal of reducing debt costs so that entrepreneurs have more money to create jobs and grow their businesses.”

For more information concerning the National Association of Development Companies, the SBA loan program or other small business success stories from NADCO-member institutions, contact Heather McNelis, NADCO director of marketing and communications at or (202) 349-0070 x19. An alternative point of contact is Rachel O’Sullivan of Vox Optima, LLC at or (760) 310-4146.


SOURCE National Association of Development Companies (NADCO)


Debt Refi Now Law

Today, a permanent 504 debt refinancing program became law. Many years of hard work by NADCO and our members went into this successful moment. It is a wonderful way to end the year.

There are still many months until the refi program can be used. During NADCO’s Annual Meeting, SBA estimated it would take a minimum of 4-6 months to issue the regulations and the forms needed to start the debt refi program again. As mentioned in the previous email on debt refi, Congress has added several additional restrictions on this iteration of refi. SBA will need to carefully analyze these changes, as well as reexamine the last refi program before issuing new regulations on this topic. NADCO is already working with SBA to help move this process along quickly, but particularly because this program is now permanent, it is imperative to get these regulations right.

For CDCs who also participate in the Community Advantage or broader 7(a) program, the omnibus appropriations bill which contained the debt refi provision also set the cap on 7(a) loans at $26.5 billion for FY16.

As a reminder, NADCO is closed for the holidays December 25 through January 1. We look forward to a great 2016 with all of you.

Thank you to all NADCO members who worked so hard to bring debt refi back. The letters, calls, stories, and trips to DC each made a difference and slowly penetrated the traditional inertia of Congress. Today’s success is a valuable reminder of the power of our economic development message and the strength of our industry when we work together.

©2015 National Association of Development Companies | 1725 Desales St. NW | Suite 504 | Washington, D.C. 20036

NADCO Debt Refi Update

A few minutes ago, Congress released the text of the omnibus bill which will fund the government for the remainder of FY16. It contains a provision which will permanently reinstitute the debt refinancing program.

This is a result of many hours of work by NADCO and its members, our congressional allies, and SBA, and a major victory for the CDC industry. NADCO has worked tirelessly to promote debt refi legislation and advance it through any and all available avenues. It is truly gratifying to see this result come from such extensive effort.

Congress has added a few additional caveats on debt refi in exchange for its return. The program can only be used in years that both standard 504 and the refi program are at zero subsidy. Additionally, a CDC’s 504 portfolio, by dollars, must be at least 50% standard 504 loans. Refi loans cannot make up a majority of the portfolio comprar viagra sin receta madrid. A waiver provision exists if SBA sees good cause for additional refi loans to be made.

While it is exciting to be included in the omnibus, this is not yet law. This bill still needs to pass through Congress and be signed by the President. We anticipate those votes will happen by the end of this week or early next week and are hopeful for their success. Please remember that if this does occur, SBA has said it will take AT LEAST 4-6 months to be able to restart this new version of the refinance program. NADCO will send a second message once the final congressional vote has occurred to report whether debt refi has been reinstituted.

SBA Announces Reserve Fee Removal

The SBA recently announced that a reserve fee that had been associated with the program is no longer needed and has been removed viagra comprar viagra generico. The removal of this ½ point fee will save the borrowers on their permanent loan amount.

Over the past few years, this fee served to get the SBA 504 loan program back to a solid foundation and help the program become self-funding once again. Now that we have seen significant economic recovery, this fee is no longer needed.

Below is an example of a loan request that GTCC typically sees. In this example, we have eliminated the ½ point fee that was once rolled into the final loan amount. As you can see, removing this fee saves the borrower $4,510 on the permanent loan amount.

Fee Example 1

Fee Example 2

July 2015 Updates

As interest rates are near historical lows, it’s a good time to consider SBA 504 loans to finance small business real estate. This program can lock up to 40% of your borrower’s loan into a low fixed rate. Your borrower will thank you as rates rise.


GTCC is proud to be a Platinum Sponsor for the 21st Annual Mid-America Lenders Conference, to be held in Dallas from Aug. 31st to Sept. 2nd. The conference is for lenders who utilize SBA loan programs and will include informational sessions, discussions, networking, and more. Click here to learn more.

The SBA 504 Loan Program Returns to Zero Subsidy

We received good news last week when our trade association, NADCO, announced that the SBA 504 Program is returning to zero subsidy. (Click here to read the full press release.) What exactly does that mean?

The program is self-funded through fees that borrowers and first lien lenders pay into the program. This is excellent news because it provides stability to the program and allows small business owners to secure long-term, fixed-rate financing for their real estate and equipment needs.

The program has historically been zero subsidy, but as a result of the Great Recession, the program did require a subsidy from 2012 to 2015. We are proud to have played a role in helping the program return to zero subsidy.

504 Prepayment Penalty Myth

One of the biggest misunderstandings of the 504 loan program is the prepayment penalty myth. Many people believe that the prepayment is a declining 10% for 10 years. It actually declines 10% per year from a starting index, which is the debenture rate, not the note rate which is 4.80% for March.

Prepayment Penalty Rates for Loans Funding March 2015For example, the debenture rate in March is 2.72%. In year five, the prepayment percentage against the outstanding loan amount would be 1.63%.

Furthermore, if you sell your business, the prepayment penalty can be eliminated. This is because your loan would be assumed by the new borrower.  Assumptions such as this can be greatly beneficial when trying to sell a business with an existing 504 loan. You get to keep the low fixed rate for the remaining term of the loan, and you will not have a prepayment penalty.

Contact us today if you need help determining 504 loan facts from fiction.

New Year, New Website

Welcome to our new and improved website. We are very proud to roll out this state-of-the-art presentation of what we do and how we make a difference.

Greater Texas Capital Corp. is a non-profit economic development organization which provides low cost, long-term financing for small businesses, start-ups, growing companies, and acquisitions throughout the State of Texas. We specialize in providing long-term, low interest, fixed rate, financing for owner-occupied real estate and capital assets. We partner with banks and the U. S. Small Business Administration to provide what we believe to be the very best alternative for most small business fixed asset financing needs through the SBA 504 loan program.

Founded in East Texas in 1995, Greater Texas Capital is celebrating our 20th anniversary in business. Over those 20 years, we have participated in over one billion dollars in economic development projects throughout the state with over 450 companies, creating or retaining over 6,600 jobs through the companies being financed. We have had the great fortune of working with small businesses from a variety of industries, including companies in the manufacturing, wholesaling, hospitality, service industries, medical and professional sectors, and look forward to bringing this collective body of experience into the next chapter of our journey.

Greater Texas Capital has been recognized as the top SBA 504 lender in the Dallas District of the SBA for five successive years, and we consistently rank as one of the top producers in the five-state Region VI of the SBA. We have done this by partnering with communities, other economic development organizations, bank partners, and real estate and financial professionals in every area of the state.

If you are looking for a partner to help you start or grow your business or your clients, we look forward to working with you. Economic Development is what we are all about, and we’re proud to do all we can for small businesses the great State of Texas. Let’s talk about how we can serve you and your business.