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

ALTAMONTE SPRINGS, FL --- 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, (top right photo)  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  (middle left photo) 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.

Contacts:
Chris Hurn, CEO, Mercantile Capital Corporation, 407-786-5040 or
Geof Longstaff, Chairman, Mercantile Capital Corporation, 407-786-5040;
Larry Vershel, Larry Vershel Communications 407-644-4142

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

ALTAMONTE SPRINGS, FL. --- 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 (top right photo) , 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, (middle left phto) 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.

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

Mercantile Capital Corp. Provides Commercial Real Estate Loan to Engineering Firm in Maitland, FL worth more than $520,000

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, closed a commercial loan for Florida Bridge and Transportation, Inc. for $524,000 in total project costs.

Florida Bridge and Transportation is a structural engineering firm founded by Mike Hebert  (top right photo) and Mark Niedermann. (middle left photo) The company’s success is due to the holistic approach it takes to designing safe and reliable transportation systems.

“Mercantile Capital Corporation surpassed any expectations I had left for the lending industry. I am excited for the future they have made possible for Florida Bridge & Transportation,” said co-owner Michael Hebert.

The SmartChoice Commercial Loan Program helps owners of small to mid-sized businesses, like Florida Bridge and Transportation, have an opportunity to create wealth and financial freedom.

Their specialization in SmartChoice Commercial Loans, also known as SBA 504s, allow borrowers, like Mark Niedermann and Mike Hebert, 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, please  visit http://www.thesmartchoiceloan.com/

 and http://www.504blog.com/.

For more information about this press release, please contact:

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

Robin Lashley, Mercantile Capital Corporation, 407-786-5040

Congress Needs More Emphasis on Stimulating Small Business to Speed National Economic Recovery, Says Mercantile Capital's Chris Hurn

ALTAMONTE SPRINGS, Fla. --- Congress should shift public policy to put more emphasis on small business in America if the U.S. economy is to improve quickly, says one Central Florida financial expert.

Christopher G. Hurn, (top right photo) chief executive officer of Mercantile Capital Corp. of Altamonte Springs, which ranks as one of the largest providers of U.S. Small Business Administration (SBA) 504 loans in the nation, said U.S. economic stimulus efforts so far have gone almost exclusively to big banks and big business.

“Small business in the U.S. got less than one percent of the economic stimulus funds, when small businesses create more new jobs and more new economic activity than all other economic sectors put together,” Hurn said.

Hurn said many small businesses are the unsung heroes of the recession.

“Time after time we’re dealing with small businesses that are performing despite the worst of the economic trends,” Hurn said. “Instead of closing their doors, they are showing income statements with slight downward trends, and in this economy that’s heroic,” Hurn explained.

But that’s a problem, Hurn said. Lenders want to see increasing revenues and profits. Holding the line may be heroic in a staggering economy, but it won’t convince banks to lend them the capital they need to grow---and create more jobs.

“We need public policy in Washington to ease some of the restrictions to getting capital flowing again . . . to allow people who have done pretty well during this recession to tap some of their embedded equity in their property for instance,” Hurn said.

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

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, (top right photo) 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

Mercantile Capital Corp. Reports 66 Percent Jump in Commercial Property Loans

ALTAMONTE SPRINGS, FL --- Mercantile Capital Corporation in Altamonte Springs reports it is seeing a big increase in commercial property loans.

The firm, which specializes in U.S. Small Business Administration (SBA) 504 loans for small business owners who want to acquire or develop their own facilities, reported it closed on loans that total more than $10 million in May, up more than 66 percent over the same period last year.

Geof Longstaff, (top right photo) co-founder and chairman of Mercantile Capital Corporation, said May lending activity included $3.3 million to acquire and renovate a marina in Golden Meadow, La., and two loans that totaled $7 million to acquire Best Western hotel properties in Winslow and Cottonwood, Ariz.

Longstaff said the firm’s commercial property loans in May, 2008 totaled just over $6 million.

For more information, contact:

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

Geof Longstaff, Chairman, Mercantile Capital Corporation, 407-786-5040

Larry Vershel or Beth Payan, Larry Vershel Communications, 407-644-4142

Banker Says SBA 504 Loan Program for Small Business is Best-Kept Secret in Commercial Lending

ALTAMONTE SPRINGS, Fla. - For Christopher Hurn, (top right photo) CEO of Mercantile CapitalCorporation in Altamonte Springs, one thing is clear: the U.S. SmallBusiness Administration's 504 loan program for small business owners is thebest-kept secret in commercial lending today.

Hurn recently returned from Dallas, where he was the keynote speaker at theSBA's 5th Annual 504 Lenders Conference, which drew more than 175 majorlenders from across the southwest.

"Bankers don't like to talk about the SBA 504 program, even though it's such a powerful resource for small business owners," Hurn said.

"The loans are a bit more cumbersome to execute, but banks make less money on them than they do on traditional financing programs," Hurn said.
The SBA 504 loan program is a powerful economic resource for borrowers, forlenders and for the national economy, Hurn told the group.

"From the lender's perspective, from the borrower's perspective and from the national economy perspective, the SBA 504 lending program is reducing costs, generating jobs and making small businesses more productive, while creating wealth for business owners," Hurn said

.SBA 504 loans offer small business owners up to 90 percent financing at substantially reduced rates to develop, acquire, and remodel commercial facilities.

Mercantile Capital Corporation, formerly Mercantile Commercial Capital,ranks as one of the most active providers of SBA 504 loans in the nation.

For more information, please contact:

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

Geof Longstaff, (top left photo) 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

Sheila Goodman, Larry Vershel Communications, 407-644-4142; P407-644-4410 F

Mercantile Capital Corp. claims commercial property mortgage lending activity now approaching historic levels for leading Orlando-area firms

ALTAMONTE SPRINGS, Fla. --- Commercial property mortgage lending activity is now approaching historic highs for Mercantile Capital Corporation, which specializes in U.S. Small Business Administration (SBA) 504 loans for small business owners who want to acquire or develop their own facilities.

Christopher Hurn, (top right photo) chief executive officer of Mercantile Capital Corporation, said the six-year old company is seeing as many loan proposals as it did during its peak in mid-2007.

“We attribute the increase in deal flow to stimulus plan anticipation,” Hurn explained.

“I think the small business community is shaking off the doom and gloom attitude and starting to take a more practical approach to severely discounted commercial property assets that represent enormous opportunities for business owners,” he said.

“The Obama administration is doing some things to help the small business community, and we think leading small business owners are starting to act on the situation,” Hurn said.

“Lower commercial property values and near historic lows in financing rates won’t last much more than the next eighteen months. Innovative entrepreneurs within the small business community have a tendency to be leading indicators in my opinion, so we’re starting to see a shift,” Hurn said.

Hurn said Mercantile Capital Corporation’s increase in lending activity is also attributed to the fact that few lenders are actually lending these days.

“The financial crisis has never been one of cost of capital, it’s been an issue of access to capital,” Hurn said.

“We think the universe of owner-user commercial property deals has shrunk, but we’re getting a much larger share of the fewer deals that are out there.

"The creditworthiness of our deals is increasing -- only the strongest and healthiest transactions are getting done these days -- and deals that would have ordinarily gone to a large regional bank are now coming to us,” Hurn said.

For more information, please contact:

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