Sale-Leaseback an increasingly important strategy to raise capital amid recession and tight lending, says NAI Realvest executive

MAITLAND – Slow economic recovery and tight lending environment have made sale-leaseback transactions an increasingly popular strategy to raise capital and focus a company’s resources on its core profit-making business, says one real estate expert.

Mez Birdie, CCIM, director of retail services at NAI Realvest, in Maitland said “Companies make a higher return on capital in its core business compared to a lower return on owning real estate. Most companies have profit margins in double digits, while real estate returns are generally in single digits.”

“Real estate can’t earn a company the same sort of returns as its primary business,” Birdie also said. “By selling real estate, a company can reduce its debt, repurchase company stock, and focus its resources on core business lines, thus adding value to the company,” he added.

Birdie said sale-leaseback transactions today are far less rigid than in times past. “Sale-leaseback offers more flexibility than owning, as a company can structure the lease to suit its long or short-term needs. A properly negotiated lease provide flexible lease terms, such as: right of lease termination by way of property substitution, right to purchase properties, right of first refusal to purchase and lease servicing programs. These flexibilities give a company the option to close or relocate poor locations,” he said.

Upcoming changes in Federal Accounting Standards Board (FASB) rules may impact sale-leaseback transactions, Birdie said. “On an after-tax basis, sale-leaseback transactions offer significant benefits, as lease payments are tax deductible. FASB rules apply to sale-leaseback transactions. To determine if the transaction qualifies as an ‘operating or capital’ lease, accounting and legal departments of the company play an important role in crafting a beneficial sale-leaseback transaction,” he explained.
* * *

For more information, contact: Mez Birdie, CCIM, Director-Retail & Investment Services, NAI Realvest 407-949-0734, Mbirdie@realvest.com; Patrick Mahoney, President and COO NAI Realvest, 407-875-9989, pmahoney@realvest.com; Beth Payan or Larry Vershel, Larry Vershel Communications, 407-644-4142

About NAI Realvest: NAI Realvest, covering all of Central Florida, is a fully integrated commercial real estate operating company specializing in brokerage, development, investment, leasing and management, consulting and research services in the U.S. and worldwide through NAI Global, an international commercial real estate network with over 325 offices spanning the globe. Since 1978, clients have built their businesses on the power of NAI Global’s expanding network. Extensive services include multi-site acquisitions and dispositions, sublease, tenant representation, lease administration and audit, investment services, due diligence and related consulting and advisory services. To learn more, visit www.NAIrealvest.com.

Mercantile Capital Corporation Closes Eight Commercial Loans in May to Fund Projects Valued at $17.8 Million

ALTAMONTE SPRINGS - Mercantile Capital Corporation, which ranks as one of the nation’s top providers of U.S. Small Business Administration (SBA) 504 loans for small business owners who want to acquire or develop their own facilities, reported it closed eight commercial loans in May that will fund projects valued at more than $17.8 million.

Christopher G. Hurn, chief executive officer of Mercantile Capital Corporation, said four small business owners in Florida, three in California and one in Illinois received the loans.

Hurn said Mercantile Capital Corporation’s total loan volume since January marks the best five months in the company’s five-year history.

“Since January, we have closed 22 loans to fund projects valued at almost $65 million in eight states that will create an estimated 438 new jobs,” Hurn said.

“We are on track to maintain this pace through the end of this year, and we project to close loans on projects valued at more than $125 million before the end of the year, which would make this our best year ever.” Hurn said.

Visit http://www.504experts.com/ and http://www.504blog.com/.

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

Sanford Airport Authority Re-Elects Geof Longstaff Chairman, New Secretary-Treasurer, New Vice-Chairman

SANFORD, Fla. --- The Sanford Airport Authority, which manages Orlando-Sanford International Airport, has re-elected Geof Longstaff to his fifth one-year term as chairman of the board of directors.

Longstaff is chairman of Mercantile Capital Corp. in Altamonte Springs, and is currently in his third term with the Airport Authority

Also elected was Tim Donihi, vice-chairman. Donihi, a real estate broker with Pilot Properties in Sanford, is in his second term on the board, and formerly served as secretary-treasurer. Bill Litton, a new member of the board, was elected secretary-treasurer. Litton is employed with the Seminole County Sheriff’s Office.

For more information contact:
Diane Crews, VP of Administration, Sanford Airport Authority, 407-322-7771
Larry Vershel or Beth Payan, Larry Vershel Communications, 407-644-4142

Avalon Park Poised with Unique Opportunities for Medical Office, Residential Growth

ORLANDO, Fla. - Avalon Park in east Orlando, in the heart of Innovation Way, is poised for growth in medical professional offices and unique opportunities for private practitioners, including office-residential space.

Ross Halle, vice president of architecture and town planner at Avalon Park, said the 11-year-old community now features more than 3,500 homes on 1,860 acres with elementary, middle, technical and high schools, and a downtown district that will soon feature more than one million square feet of commercial space, rental apartments and town homes and public facilities.

“There are more than 10,000 people within a one mile radius of downtown Avalon Park and more than 50,000 people within a three-mile radius,” Halle said. “Almost half of the households near downtown Avalon Park earn more than $100,000 annually,” he said.

Avalon Park’s unique location – centrally located between the new Medical City, University of Central Florida, Central Florida Research Park and Orlando International Airport has earned its recognition as “Downtown East Orlando,” said Brendon Dedekind, director of business development for Avalon Park Group.

“Our new 45,000 square foot medical office building, which opened this year, is the perfect location for private and clinical practice health care professionals,” Dedekind said.

Development is underway of senior living facilities that will provide a wide range of services, including Alzheimer’s care.

Dedekind said the developer offers certain incentives including capital investment and attractive financing options.

“Avalon Park has matured as the optimal community to live, work and play,” Halle said.

For more information visit www.avalonparkgroup.com or
Stephanie Hodson, Marketing Coordinator, Avalon Park Group 407-658-6565
Beat Kahli, Founder /CEO Avalon Park Group 407-658-6565
Brendon Dedekind, Director of Business Development, 407-648-6565
Ross Halle, VP Architecture/Town Planner Avalon Park Group 407-658-6565
Larry Vershel, Larry Vershel Communications 407-644-4142, Lvershelco@aol.com

Mercantile Capital Corp Reports Record Low Interest Rate on SBA 504 Loans

ALTAMONTE SPRINGS, Fla. - Mercantile Capital Corporation, which specializes in U.S. Small Business Administration (SBA) 504 loans for owners of small businesses who want to acquire their own facilities, reports a record low for the 20-year fixed interest rate on SBA 504 loan projects. This month, the rate fell to 5.14 percent, the lowest since the program’s inception more than 25 years ago.

“This record low interest rate for SBA 504 loans, combined with the fee reductions included in the Stimulus Bill, makes it even more attractive for business owners to purchase or expand their facilities. And this is the second time in three months that we’ve reported this,” said Chris Hurn, CEO and Co-founder of Mercantile Capital Corporation.

SBA 504 loans allow owners of small and mid-sized businesses to purchase, construct, or renovate their commercial property with as little as 10 percent down, long terms (up to 25 years) and fixed interest rates. Equipment and other fixed assets can also be included in these loans, to the benefit of the borrower.

“The SBA 504 loan has long been a powerful tool for business owners to grow and expand their operations. I hope the announcement of this historically low interest rate will cause more of America’s entrepreneurs to perk up and realize that there are once-in-a-generation opportunities for them to create wealth and help get our economy back on track,” said Hurn.

Mercantile Capital Corporation ranks as one of the most active providers of SBA 504 loans nationwide, providing owners of small and mid-sized businesses the option to own commercial property with up to 90 percent loan-to-cost financing.

Visit www.504Experts.com or www.504blog.com for more information.

For more information about this news release contact:
Chris Hurn, CEO, Mercantile Capital Corporation, 407-786-5040
Geof Longstaff, Chairman, Mercantile Capital Corporation, 407-786-5040
Shannon D. Marks, President/COO, Mercantile Capital Corporation, 407-786-5040
Larry Vershel, Larry Vershel Communications 407-644-4142

Mercantile Capital Corporation Sees Jump in Lending Volume in August, to Finance I-Drive Hotel, Suburban Atlanta Dental Office Among Others

Mercantile Capital Corporation Sees Jump in Lending Volume in August, to Finance I-Drive Hotel, Suburban Atlanta Dental Office Among Others

ALTAMONTE SPRINGS, Fla. - Mercantile Capital Corporation, which ranks as one of the nation’s leading provider of U.S. Small Business Administration (SBA) 504 loans saw a big jump in commercial loan volume in August.

Christopher G. Hurn, president of Mercantile Capital Corp., said the firm closed on loans worth more than $12 million in August, up more than 212 percent over the same period last year.

Hurn said August loans included $4.5 million to acquire and renovate Best Western’s Sun Vista Hotel on International drive in Orlando and $1.1 million to acquire and renovate a dental office in Atlanta.

“We anticipate we will close on loans that total more than $90 million in 2009,” Hurn said.
SBA 504 loans offer 90 percent loan-to-cost financing at below-market rates for qualified small business owners who want to acquire or develop their own facilities.

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

Mercantile Capital Corporation Appoints Four New SBA 504 Loan Specialists

Mercantile Capital Corporation Appoints Four New SBA 504 Loan Specialists

ALTAMONTE SPRINGS, Fla. - 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 appointed four new SBA 504 loan specialists.

Christopher G. Hurn, CEO of Mercantile Capital Corporation, said he promoted Jon DeJulio from intern to marketing associate.

Yelena Sulyagina was promoted from intern to credit analyst.

Tammy Hennen was named operations administrator and Carolyn Skog was named credit analyst. Both Hennen and Skog have more than 20 years of experience.

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

Commercial Real Estate, Investment Analyst Sees Mixed Signals on Economy, Housing News Promising

Commercial Real Estate, Investment Analyst Sees Mixed Signals on Economy, Housing News Promising

ORLANDO, Fla. - Veteran commercial real estate and investments analyst George Livingston, chairman emeritus of NAI Realvest in Maitland, said the Federal Bank of Atlanta’s recent economic update reports mixed signals on the U.S. economy but good news for the U.S. housing market.

While consumer gauges---the U.S. Consumer Confidence Index and the University of Michigan’s Consumer Sentiment Index---showed declines, capital goods orders increased modestly in June for the first time in more than a year.

Two major housing indices may signal a bottoming of the housing slump and the path toward recovery. The widely respected Case-Shiller Home Price Index was up, Livingston said, and new and existing single-family home sales were up in June for the third month in a row---and higher than industry expectations.

“It appears the housing market may be recovering and the rest of the economy is lagging,” said Livingston.

For more information, contact:
George Livingston, Chairman Emeritus, NAI Realvest 407-875-9989 glivingston@realvest.com
Patrick Mahoney, President, NAI Realvest, 407-875-9989 pmahoney@realvest.com
Larry Vershel or Beth Payan, Larry Vershel Communications, 407-644-4142 lvershelco@aol.com

About NAI Realvest:
NAI Realvest, serving all of Central Florida, is a fully integrated commercial real estate operating company specializing in brokerage, development, investment, leasing and management, consulting and research services in the U.S. and worldwide. NAI Global is an international commercial real estate network with over 325 offices spanning the globe. Since 1978, clients have built businesses on the power of NAI Global’s expanding network. Extensive services include multi-site acquisitions and dispositions, sublease, tenant representation, lease administration and audit, investment services, due diligence and related consulting and advisory services. To learn more, visit http://www.nairealvest.com/.

Entrust Administrative Services Launches Web-Based Seminars, Classes to Educate Retirement Investors

Entrust Administrative Services Launches Web-Based Seminars, Classes to Educate Retirement Investors

LAKE MARY, Fla. - Entrust Administrative Services, which provides administrative services for more than 2,000 self-directed retirement accounts that total more than $200 million, has launched a new web-based program of live streaming videos and webinars at http://www.entrustfl.com/ to educate retirement investors.

Glen Mather, president of Entrust Administrative Services, said the webinars and live streaming classes are provided free to interested investors.

“Our webinars and live streaming classes are designed to educate adults of all ages about the opportunities available to them to invest their own retirement funds,” Mather said.

What began as a service directed at retirement-aged adults has expanded to include younger adults, Mather explained.

“We serve many people in their 30s and 40s who are accumulating tax-free retirement accounts and who prefer to invest those funds rather than trust them to fund managers,” Mather said.

“We’re seeing a major shift in the way people save for retirement, and knowledgeable, well-educated investors can generate higher returns within their retirement accounts if they pay attention to all the investment vehicles available to them,” Mather explained.

Mather said self-directed retirement accounts in the U.S. represent a major new source of capital for private investment that could have profound effects on U.S. economic growth.
“Self-directed retirement accounts offer the most promising new trend in U.S. capital investment,” Mather said.

To view the webinars and live streaming video classes, visit http://www.entrustfl.com/.

For more information, contact:

Glen Mather, President Entrust Administrative Services, Inc. 407-367-3472; gmather@entrustfl.com

Jason DeBono, Director, Business Development Entrust Administrative Services; 407-368-7878; jdebono@entrustfl.com

Larry Vershel, Larry Vershel Communications 407-644-4142 lvershelco@aol.com

Expansion of SBA’s latest initiative could have dramatic impact on Small Businesses, National Economy, says Chris Hurn

Expansion of SBA’s latest initiative could have dramatic impact on Small Businesses, National Economy, says Chris Hurn

ALTAMONTE SPRINGS, Fla. - The U.S. Small Business Administration’s helpful decision recently to extend its SBA-504 lending program ---which helps small business owners who want to acquire or develop their own facilities---doesn’t go far enough, says Chris Hurn, chief executive officer of Mercantile Capital Corporation in Altamonte Springs.

Hurn’s analysis, which he published at www.504Experts.com, is getting some major media traction, including a lengthy interview in the New York Times.

The most recent SBA initiative---announced last February and put into effect recently---extends the SBA’s 504 lending program to include refinancing.

Hurn gives the SBA credit for extending the 504 loan program. But the SBA initiative requires businesses to use new funds for expansion purposes only.

“That’s the kink,” Hurn said. “How many small businesses are in an expansion mode in this economy?” he asked.

Billions of dollars worth of potential small business loans go unfunded every year, Hurn said.

“That money needs to be in the marketplace to have any positive effect on small business growth. The $255 million,” Hurn said.

The numbers back Hurn’s proposition: SBA 504 loans are down 41.5 percent this fiscal year and the total dollar amount funded has dropped 42.5 percent from last year.

“The SBA is moving in the right direction, but the positive impact on small business growth in the U.S. would be explosive if SBA would lift its restriction to small business expansion and open the door to true refinancing,” Hurn added.

For more information, contact:
Chris Hurn, Chief Executive Officer Mercantile Capital Corporation, 407-786-5040
Shannon Marks, President, Mercantile Capital Corporation, 407-786-5040
Larry Vershel, Larry Vershel Communications 407-644-4142

BioTRAiTS, Inc. Selected to Present at Florida Venture Forum’s Early Stage Capital Conference May 15

BioTRAiTS, Inc. Selected to Present at Florida Venture Forum’s Early Stage Capital Conference May 15

ORLANDO, Fla. – BioTRAiTS, Inc., a biometric technology company that provides private companies and public agencies with customized software and hardware solutions for access control and time & attendance tracking, has been selected to present at the Florida Venture Forum’s Early Stage Capital Conference on May 15 at Omni Orlando Resort at ChampionsGate.

Peter A. Wengert, president of BioTRAiTS, Inc., said their selection represents a significant milestone in the company’s growth.

“The Early Stage Capital Conference is a gathering of potential investors from across the country looking for emerging enterprises that promise substantial returns,” he said.

“We are already in the market with a powerful package of solutions that can benefit almost any business,” Wengert said. “We make access control as well as tracking, accounting and control of worker time, attendance and project responsibilities almost effortless and absolutely accurate,” he said. “Additional capital will enable us to ramp up our expansion and become a major market player.”

BioTRAiTS, Inc., already counts among their diverse customer base The Vue at Lake Eola, a luxury condo development in downtown Orlando, Merrimac Industries in New Jersey, and New York and South Florida based Joseph’s Classic Markets, a specialty grocer. The company recently acquired Orlando-based Reliable Tech Experts.

BioTraits Inc. is a University of Central Florida Business Incubation Program client at the Technology Incubator in Research Park.

For more information about this release contact:
Peter A. Wengert, CEO BioTraits, Inc. 3267 Progress Drive, Suite 103, Orlando, FL 32826; 866-815-0888 or peter@biotraits.com

Carol Ann Dykes, Site Manager, UCF Technology Incubator, 407-882-0211, cdykes@mail.ucf.edu

Tom O’Neal, Executive Director, UCF Incubation Program, 407 882-1120, oneal@mail.ucf.edu

Larry Vershel or Beth Payan, Larry Vershel Communications, 407-644-4142 or LvershelCo@aol.com.

About BioTraits:
Founded in March 2003, BioTraits, Inc. is a biometric company providing solutions for biometric identification and verification products through its development of a suite of workforce management products and distribution of biometric access control products. For more information, visit http://www.biotraits.com/.

About the Florida Venture Forum:
The Florida Venture Forum offers programs statewide to provide expert counsel, educational advice and managerial assistance to entrepreneurial ventures. The Forum hosts two capital conferences each year. The Early Stage conference in May is focused on companies seeking their first round of equity funding. The Capital Conference in January is focused on high growth companies seeking later stage funding. In the past 18 years, presenters at the Forum’s capital conferences have raised over $1.8 billion. For more information, visit http://www.floridaventureforum.org/.

About the UCF Incubation Program:
Since its founding in 1999, the UCF Business Incubation Program has helped more than 100 emerging companies (including nearly 70 current clients) create over $500 million in annual revenue and more than 900 new jobs with an average salary of $59,000. With five facilities across the Greater Orlando community, the Incubation Program is a collaboration in economic development between the University of Central Florida, the City of Orlando, Orange County, Seminole County, the City of Winter Springs, and the Florida High Tech Corridor Council. For more information, please visit http://www.incubator.ucf.edu/.

Eginity Invited to Present at Florida Venture Forum Early Stage Venture Capital Conference May 15

Eginity Invited to Present at Florida Venture Forum Early Stage Venture Capital Conference May 15

ORLANDO, Fla. - Eginity, an Orlando-based company that specializes in Wireless Sensor Network (WSN) technology, has been invited to showcase itself at the Florida Venture Forum 2009 Early Stage Venture Capital Conference May 15 at the Omni Orlando Resort at ChampionsGate.

Rob Allen, president and co-founder of the one-year-old start-up firm, said he’s confident that Eginity’s new EON Platform – an end-to-end WSN solution – will get a lot of attention from venture capital investors.

“The WSN market is substantial,” Allen said. “WSN has already been spotlighted by leading IT researchers as one of the top 10 technology growth sectors through 2012,” he added.

“WSN technology gives an IP-address to an object, making it ‘smart’ – meaning it can gather and transmit information about its condition or environment over the Internet,” explained Allen. “Although WSNs are used extensively in defense and industrial settings, high costs have limited use in other areas. The EON Platform eliminates this issue, paving the way for the development of hundreds of new ‘smart’ commercial applications,” he said.

“Eginity’s EON Platform was designed to be licensed or acquired by original equipment manufacturers (OEMs) for incorporation into existing or new products,” Allen said.

“We have expertise at every level of WSN technology, and the resulting uncomplicated design of the EON Platform will make it the cornerstone for new WSN applications,” he added.

EON Platform technology will enable manufacturers to substantially reduce the costs of existing sensor networks, enable current “stand-alone” sensor applications with WSN functionality, or invent and rapidly develop new “smart” solutions.

Eginity is a member client of the University of Central Florida Business Incubation Program.

For more information about this press release, contact:
Rob Allen, President, Eginity, 407-745-0097 rallen@eginity.com (http://www.eginity.com/)

Gordon Hogan, Site Manager, UCF Incubation Program-Downtown, 407-882-1577, bizdev@mail.ucf.edu

Larry Vershel or Beth Payan, Larry Vershel Communications Inc., 407-644-4142, lvershelco@aol.com

About the UCF Incubation Program:
Since its founding in 1999, the UCF Incubation Program has helped more than 100 emerging companies (including nearly 70 current clients) create over $500 million in annual revenue and more than 900 new jobs with an average salary of $59,000. With five facilities across the Greater Orlando community, the Incubation Program is a collaboration in economic development between the University of Central Florida, Orange County, the City of Orlando, Seminole County, the City of Winter Springs, and the Florida High Tech Corridor Council. For more information, please visit http://www.incubator.ucf.edu/.

UCF Business Incubation Program to Expand to Leesburg, St. Cloud

UCF Business Incubation Program to Expand to Leesburg, St. Cloud

ORLANDO, Fla. - The University of Central Florida Business Incubation Program, which currently serves more than 70 full-time clients in five Central Florida facilities, plans to expand to include programs in Leesburg and St. Cloud.

Dr. Tom O’Neal, associate vice president for the University’s Department of Research & Commercialization and executive director of the UCF Business Incubation Program, said he expects to open operations in St. Cloud and Leesburg by next spring.

Currently, the UCF Business Incubation Program operates two facilities near the University of Central Florida campus in Research Park, and three more – on Orange Ave. in downtown Orlando, in east Orlando on East Colonial and in Winter Springs at S.R. 434 and the 417.

“Effective incubation programs have proved to be the most cost efficient ways to stimulate local economic growth,” O’Neal explained.

O’Neal, who founded the UCF Business Incubation Program and ranks as one of the leading U.S. experts on business incubators, said successful incubation programs offer several common characteristics including: stable, sustainable program funding; a strong market position; entrepreneurial management; affiliation with a major research institution; a blue-ribbon board of directors or advisors; the ability to attract quality client companies; a strong client screening process; measurable goals and objectives; strong value-added services; and access to investment capital and community partnerships.

For more information contact:

Tom O’Neal. Ph.D, UCF Associate Vice President for Research and Commercialization and Incubation Program Executive Director, 407-882-1120, oneal@mail.ucf.edu

Larry Vershel or Beth Payan, Larry Vershel Communications 407-644-4142 Lvershelco@aol.com

About the UCF Incubation Program:
Since its founding in 1999, the UCF Incubation Program has helped more than 100 emerging companies (including nearly 70 current clients) create over $500 million in annual revenue and more than 900 new jobs with an average salary of $59,000. With five facilities across the metro Orlando community, the Incubation Program is a collaboration in economic development between UCF, Orange County, the City of Orlando, Seminole County, the City of Winter Springs, and the Florida High Tech Corridor Council. For more information, please visit http://www.incubator.ucf.edu/.

Small Bay Partners, LLC, Succeeding Despite Economy Downturn

Small Bay Partners, LLC, Succeeding Despite Economy Downturn

ORLANDO, Fla. - Small Bay Partners, LLC, the Orlando-based company that specializes in developing small bay industrial facilities for business users of 2,000 to 20,000 square feet of space, has continued to grow despite a sagging economy.

Howard Schieferdecker, one of the founders and principals of Small Bay Partners, LLC, said good planning is the reason.

“Our master strategy has always been to limit debt on our properties,” Schieferdecker said.

“When we saw the problems coming in late 2007 and early 2008, we did everything we could to reduce debt as much as possible, so most of the property that we have now is owned free and clear,” he said.

Small Bay currently owns a 16-acre Apopka parcel that is slated for future development, Monroe CommerCenter IV in Sanford, with 73,650 square feet of warehouse condominium space; and Poinciana CommerCenter, which is under development now with 120,000 square feet.

“The key to surviving downturns is to avoid excessive debt on development projects,” Geof Longstaff, another principal of Small Bay Partners, explained.

Small Bay Partners is also well capitalized.

“We have quite a bit of cash in the bank to hold us. If there is a problem that comes up, we have plenty of funds to take care of it until the market turns,” he said.

For more information contact
Howard Schieferdecker, Principal Small Bay Partners, LLC 407-702-3131, haschief@aol.com;
Geof Longstaff, Principal Small Bay Partners, LLC - 407-786-5040; glongstaff@mercantilecc.com;
George Livingston, Principal, Small Bay Partners LLC - 407-857-9989 glivingston@realvest.com;
Larry Vershel or Beth Payan, Larry Vershel Communications, 407-644-4142

U.S. Economic Stimulus Program Contains Promising Elements,But Not Enough, Lender Says

U.S. Economic Stimulus Program Contains Promising Elements,But Not Enough, Lender Says

ALTAMONTE SPRINGS, Fla. - The U.S. Economic Stimulus program has many good elements that will help small businesses but some miss the point, according to Christopher Hurn, chief executive officer of one of the nation’s leading providers of U.S. Small Business Administration (SBA) 504 loans for small business owners.

Hurn, CEO of Mercantile Capital Corporation based in Altamonte Springs and a popular speaker at banking conferences and seminars who posts his own blog at http://www.504blog.com/, said the U.S. Economic Stimulus program deserves kudos for promising to buy up to $15 billion worth of guaranteed SBA loans.

Hurn said the stimulus package also eliminates all SBA fees on both SBA 504 loans and the agency’s SBA 7(a) loan program at a cost of $245 million.

In addition, the administration has announced it will waive capital gains taxes for small business owners who hold or have held their shares for a minimum of five years.
“Those are positive signs for small business owners,” Hurn said.

“The Treasury buys in the secondary market will add liquidity to the banking environment and thaw out the secondary market and commercial lending---small business lending,” Hurn explained.

But, Hurn cautioned, temporarily eliminating fees on SBA loans won’t have much effect on economic stimulation or job growth.

“Fee elimination, even on a temporary basis, doesn’t impact small business owners that much because these aren’t out-of-pocket fees. These fees are actually financed in the loans, so even though it sounds good rhetorically, I don’t know that it’s going to have much of a stimulative effect,” Hurn said.

Hurn said the stimulus program fails in some other regards as well.

“We haven’t addressed any taxation at all,” he said. “There are no new higher tax credits for 2009, which I think would help grow the job base if properly incentivized. There is no mention of a payroll tax holiday for 2009. That would put more dollars in employees’ and employers’ pockets, and these are the kinds of elements that would have an immediate effect and jump start the economy,” Hurn said.

For more information, please contact
Chris Hurn, CEO, Mercantile Capital Corporation, 407-786-5040
Geof Longstaff, Chairman, Mercantile Capital Corporation, 407-786-5040
Shannon D. Marks, COO, Mercantile Capital Corporation, 407-786-5040
Larry Vershel or Beth Payan, Larry Vershel Communications, 407-644-4142