Obama Administration Should Expand Small Business Administration Lending to Spur Economic Recovery, Mercantile Capital Corp. CEO says

ALTAMONTE SPRINGS - The Obama Administration’s proposal to funnel $30 billion in TARP receipts to community banks to spur lending to small businesses could do more to help the economy if it focused on the U.S. Small Business Administration lending programs themselves, says Christopher G. Hurn, chief executive officer of Mercantile Capital Corporation in Altamonte Springs.

Hurn, whose company ranks as one of the leading providers of SBA 504 commercial loans to small business owners who want to acquire or develop their own facilities, said changes in SBA lending could go a long way toward growing the national economy.

“One of the things I’ve been saying for a few years is that the SBA 504 program should be used to refinance commercial real estate as well,” Hurn said. “You can’t do that with the program right now,” Hurn explained. “But as of Friday the 5th, the President seems to be on board with my proposal. We’ll see how quickly this solution can be put in place.”

Hurn gave the Obama administration high mark for its plan to eliminate capital gains tax on investments in small business.

“That’s phenomenal,” Hurn said. “We’ve finally seen a free market solution out of this President and this one actually would be good. That would be the kind of thing that will stimulate equity investments in the small business sector,” he said.

Hurn said many Obama administration proposals are problematic.

“The small business lending proposals are going to have mixed results,” Hurn explained. “Most community banks that have survived over the past 18 months have better capital ratios than large national banks, are relatively flush with capital and yet they’re lending less of their capital.

“Providing them up to five percent of their weighted assets to lend to small business customers at interest rates in the low fives to seven percent, doesn’t provide enough profit to cover the banks’ overhead. The only community banks that will be interested in this program are the ones that aren’t doing as well,” Hurn said. “Healthy community banks probably aren’t going to participate,” he said.

The $5,000 jobs credit is also troublesome, Hurn said. “If you’re a smart business person you’re not going to hire somebody for a position for something that you don’t have a demand for in your products and services just in order to get the job credit,” Hurn said.

The plan may benefit companies that are already expanding, but too few companies are expanding in this economy, he said.

“Expense reductions for equipment purchases also falls flat,” Hurn said.

“If you are a company that’s buying equipment, it helps you, but it doesn’t really get to the underlying problem affecting most small businesses in America that are struggling right now,” he said.
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For more information about this press release contact:

Chris Hurn, CEO, Mercantile Capital Corporation, 407-786-5040 or Geof Longstaff, Chairman, Mercantile Capital Corporation, 407-786-5040

Mercantile Capital Corporation Eyes Major Lending Growth in First Quarter, Projects Loans Valued at over $26 Million

ALTAMONTE SPRINGS - Mercantile Capital Corporation reports it closed on five commercial property loans worth more than $11.6 million in total project costs in January. The firm, which ranks as one of the largest providers of U.S. Small Business Administration (SBA) 504 loans in the nation, predicts it will see a record first quarter this year with loans worth more than $26 million in total project costs.

Christopher G. Hurn, president and chief executive officer of Mercantile Capital Corporation, said the firm closed on only three commercial property loans during the first quarter of 2009.

The firm finished the year with 35 closed loans worth over $78.1 million in total project costs.

This year, Hurn said, Mercantile Commercial should close on loans that represent more than $103 million in total projects.

Hurn said Mercantile Capital’s largest project in January was $4.7 million for the construction and improvements of an existing convenience store in Las Vegas.

For more information about this press release, contact: G. Geoffrey Longstaff, Chairman, Mercantile Capital Corporation 407-786-5040; Christopher G. Hurn, CEO, Mercantile Capital Corporation, 407-786-5040

Mercantile Capital Corporation Provides Commercial Real Estate Loan in Lake Mary worth $712,000

Altamonte Springs – Mercantile Capital Corporation, which ranks as one of the nation’s leading providers of U.S. Small Business Administration (SBA) 504 loans for small business owners who want to acquire or develop their own facilities, recently closed a commercial loan for Out-

Spoke’N Bike Shops, Inc. for $712,000 in total project costs.

Family owned and operated since 1997, Out-Spoke’N Bike Shops, Inc. is a retail bicycle store that focuses on all aspects of cycling, and is a popular cycling destination in Central Florida, located in Lake Mary.

“Working with Mercantile was great. Not only did they have excellent product knowledge, but they were available well past regular working hours, which was so helpful, considering I still had a business to run during the loan process.” said Michael Cottle, co-owner with his wife, Arden.

The SmartChoice Commercial Loan Program helps owners of small to mid-sized businesses, like Out-Spoke’N Bike Shops, Inc., have an opportunity to create wealth and financial freedom. Their specialization in SmartChoice Commercial Loans, also known as SBA 504s,, allows borrowers, like Michael and Arden Cottle, to own their commercial property with the highest cash-on-cash return financing available, without tying up their precious capital, so they can grow even faster.

For more information visit www.TheSmartChoiceLoan.com and www.504Blog.com.

For more information about this press release Contact:
Chris Hurn, Mercantile Capital Corporation, 407-786-5040 or Robin Lashley, Mercantile Capital Corporation, 407-786-5040

Mercantile Capital Corp. Reports 12.8 Percent Jump in Commercial Lending Volume in 2009

ALTAMONTE SPRINGS, Fla. --- Mercantile Capital Corporation, the Altamonte Springs firm that ranks as one of the largest providers of U.S. Small Business Administration (SBA) 504 loans in the nation, reported it saw a 12.8 percent increase in lending volume in 2009 over 2008 dollar volume totals.

Chris Hurn, president of Mercantile Capital Corporation, said the number of transactions declined slightly in 2009 but loan amounts---to small business owners who want to acquire or develop their own facilities---increased, Hurn said.

Geof Longstaff, chairman, said the firm’s largest single loan was $8.1 million to Blaine Convention Services in California to acquire a retail warehouse.

Mercantile Capital Corporation provided loans to small businesses in some 14 states in 2009, Longstaff said.

Since Mercantile Capital opened its doors in late 2002, the firm has provided 262 commercial loans valued at more than $424.7 million and created 2,983 jobs.
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For more information about this press release, contact:
G. Geoffrey Longstaff, Chairman, Mercantile Capital Corporation 407-786-5040
Christopher G. Hurn, CEO, Mercantile Capital Corporation, 407-786-5040

President Obama’s Jobs Initiative a Small Step in the Right Direction, Says Mercantile Capital Corporation President Chris Hurn

ALTAMONTE SPRINGS, Fla. --- Christopher Hurn, president of Mercantile Capital Corporation, the region’s most active provider of U.S. Small Business Administration (SBA) 504 loans for small business owners who want to acquire or develop their own facilities, appeared on Fox Business News recently to comment on President Obama’s efforts to stimulate job growth in the U.S.

“Some of the things being discussed -- like tax credits for new hires and a payroll tax holiday for employers -- are a good step in the right direction,” Hurn explained, “but I’m not entirely convinced that the Obama Administration has figured out how to truly stimulate our economy and actually create jobs.”

Economic stimulation starts with taxation, Hurn asserted. “You have to put money in people's pockets and then trust the American consumers and businesses to do what is best with it,” he said.

“You can't stimulate job growth without stimulating spending,” he said. “The tax credits that have been proposed are marginally beneficial, but tax credits for new hires were included as part of the original recovery bill. It’s easy to see that they haven’t had the impact we all hoped,” he said.

Hurn unveiled his own four-point plan to jump-start the national economy:

1. Implement a meaningful payroll tax holiday for both employers AND employees (Jan. 1 to July 1, or better yet, all of 2010);

2. Permanently abolish the capital gains tax on any investments made in eligible small businesses (fewer than $100 million or under 500 employees) during 2010;

3. Repeal or drastically modify Sarbanes-Oxley, as it has hampered business growth and hasn't done nearly as much good as was intended;

4. Get health reform right---the plans in circulation are still missing two very important things: tort reform and the ability to purchase health insurance across state lines.

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For more information, contact:

Chris Hurn, CEO, Mercantile Capital Corporation, 407-786-5040

Larry Vershel, Larry Vershel Communications 407-644-4142

Mercantile Capital Corp. Reports More Than $13 Million in Total Projects for November, Over $81 Million Volume for 2009

ALTAMONTE SPRINGS, Fla. --- Mercantile Capital Corporation, the Altamonte Springs firm that ranks as one of the nation’s leading providers of U.S. Small Business Administration (SBA) 504 loans for small business owners who want to acquire or develop their own facilities, reports it closed on seven commercial property loans that totaled more than $13 million in total project costs in November.

Christopher G. Hurn, chief executive officer of Mercantile Capital Corporation, said he projects the firm will close on six more commercial property loans in December for a total of $9.2 million to close out the year with more than $81 million in total project costs financed.

“We will complete the year with over $81 million in total project costs,” Hurn said. “Our dollar volume is up nearly 15 percent from 2008,” he explained.

Hurn said one of Mercantile Capital’s most important measurements---job creation---is also up this year.

“Our lending funded projects that created more than 480 new jobs in 2008,” Hurn said. “For 2009, employment growth we helped fund will total more than 500 new jobs,” he said.

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For more information contact:
Chris Hurn, CEO, Mercantile Capital Corporation, 407-786-5040
Geof Longstaff, Chairman, Mercantile Capital Corporation, 407-786-5040
Larry Vershel, Larry Vershel Communications 407-644-4142