The National Association of Development Companies (NADCO) is the trade association of SBA Certified Development Companies (CDCs) and other lenders delivering SBA loans and financing for small businesses. The SBA 504—often called the “best kept secret in business finance”—is available at 10 percent down with 20- and 10-year fixed interest rates that enable businesses to purchase and renovate capital assets as well as position themselves for other types of credit.
Each year, NADCO brings together CDC executives for a Spring Summit near Capitol Hill—this year, on May 6-9 in Arlington, Virginia. The Summit influences and provides the latest information on regulatory, policy, compliance and eligibility challenges. There are also opportunities for CDC executives and SBA professionals to interact and to educate members of Congress on the 504 program.
With NADCO being a valued NAWBO affiliate partner and access to capital still topping the list of hurdles for women business owners looking to start, scale or grow, NAWBO made it a point to attend and participate in this year’s Spring Summit. Our National Board Chair Kathy Warnick and Vice President of External Affairs Joy Lutes served as panelists for the “Avenues for Outreach to Women-Owned Businesses” breakout session (part of the BDO/Loan Officer/Marketing/Third-Party Lender Track). Hilde Kennedy, president of AMPAC TriState CDC, joined them on the panel—moderated by Heather McNelis, NADCO’s director of marketing and communications.
As part of the panel discussion, Joy and Kathy shared the latest NAWBO membership survey data and discussed NAWBO and NADCO’s joint goal of educating more NAWBO members on SBA programs/packages. For example, NAWBO’s survey data shows that just 5.6 percent of our members use an SBA loan to finance their business’ fixed assets (14.62 percent use commercial loans and 8.88 percent use private loans). Meanwhile, 18.34 percent of NAWBO members are familiar with the SBA 504 program, 18.19 percent with the SBA 7(a) program and 20.87 percent with the SBA microloan program.
“Too many women business owners still encounter barriers and obstacles that make it difficult to gain access to the capital they need to scale their businesses,” says Joy. “At NAWBO National, we work with partners like the SBA and NADCO to ensure our members understand the funding options available and are educated and empowered to pursue the financing option that best suits their business.”