504 Capital Corporation: SBA Lending Record

504 Capital Corporation in SBA data

504 Capital Corporation, a certified development company that SBA files under VA, shows 565 loans and $461.1 million in gross approvals across the FY2017 to FY2026 window. All are SBA 504 loans; there are no SBA 7(a) loans. SBA names the development company as lender of record for 504, and any first-lien lender is free text with no credit given. The numbers describe loans held or once held, with SBA providing the guarantee.

Virginia and North Carolina

Virginia carries 452 loans and North Carolina 87. The class table leaves 345 loans unnamed. Hotels and motels lead the named classes at 46, the full-service restaurant has 28, child care 21, automotive repair 19 and beverage manufacturing 13.

What happened after approval

Approvals from the FY2017 to FY2024 window: 16.1% cancelled at the least. 20.3% once undisbursed loans count as cancelled. The charge-off figure is withheld as Loan Analytics' rule requires, because the cohort contains fewer than 30 loans; so nothing here says zero.

Using the record in a feasibility study

A hotel project is the closest match, with 46 loans in this file. The study should test average rate, occupancy and what each room costs to build and renew, and show how a slower year affects the cash that serves both layers of a 504 structure, the first-lien loan and 504 Capital Corporation's portion. A child care study turns on licensed capacity, the enrolment ramp and staffing ratios; a beverage study on production capacity and the value of a specialised building. Since 345 loans sit outside the named classes, unlisted property types will have to supply their own evidence. A 16.1% floor of cancellation argues for slack in the schedule. A Virginia project is closest to the file, and a project beyond Virginia and North Carolina should explain why these holdings matter.

Limits worth stating

This record covers 565 loans, and 345 of them have no class, so the named classes describe a minority. The pair of states, Virginia at 452 and North Carolina at 87, shows where the holdings are, and nothing about other places. No charge-off rate is available to a reader, so the only evidence on later performance is the cancellation range from 16.1% to 20.3%. A borrower should weigh that range when setting the schedule, and should not treat it as a predictor for the project.