Amplio Economic Development Corporation: SBA Lending Record

Amplio Economic Development Corporation: a pure 504 book

Amplio Economic Development Corporation shows in SBA's file with 437 approvals dated FY2017 through FY2026, worth $304.2 million in gross dollars. Every loan is a 504 loan, and the 7(a) count is 0. In this program the lender SBA shows is the development company itself, and the first-lien bank is left out of the count. The page therefore describes the development company's participation and not the full financing behind any project, and it says nothing about the company's methods.

The classed loans: food, lodging, child care

278 loans sit outside the asset classes. Full-service restaurant has 30, hotel and motel 22 and child care center 20. Automotive mechanical repair (car and truck) has 16, and gas station and truck stop and beauty salon have 7 each. Hotels are real-estate-heavy projects, so a study tests land and construction cost, the occupancy and rate a site can hold against nearby rooms, and the appraisal on which a 504 structure depends. Child care asks for enrolment and staffing evidence and the licensing path. Counts this size show that such loans appear, not that any type is favoured.

A single-state record

Minnesota accounts for 425 of the loans, and it is the only state on the list. The file is tied to one state, so a borrower elsewhere has nothing to gain from it, and even a Minnesota borrower needs evidence gathered in the project's own trade area.

Cancellation, and an absent charge-off rate

Cancellations touch 9.4% of approvals in FY2017 to FY2024 (a floor), and 11.8% if undisbursed loans are counted as cancelled, the ceiling. The two numbers differ because some approvals had not yet disbursed when SBA's file was drawn. Charge-offs are not printed; a Loan Analytics rule keeps the rate off the page. Do not read the gap as zero. The cancellation figures alone say nothing about how disbursed loans performed.

A study beside the record

A borrower's feasibility study shows that the combined payment of a 504 structure is covered, that demand is real and that the budget is sound. The development company's counts offer context for choosing whom to approach and nothing about the answer a new request will get.