Orange County Small Business Development Corp. Posts Record Year

(Steve Kukrov – stock.adobe.com/Steve Kukrov – stock.adobe.com)

It’s been a successful fiscal year for the Orange County Small Business Development Corporation, headquartered in Santa Ana.

As of June 30, the organization had approved the largest number of government loan guarantees in the organization’s 23-year history, a major milestone that has implications for business owners’ ability to achieve financing and growth goals. The Development Corporation, or SBDC-OC, increased the amount of government guarantees on loans it originated from $57.5 million in FY 2023 to $86.4 million in FY 2024, maintaining overall bank lending through approved lenders, which increased from $74.5 million in the previous fiscal year to $74.5 million in the previous fiscal year. by June 30, nearly $131 million.

SBDC-OC is one of seven financial development corporations located throughout the state and operating under the auspices of the California Infrastructure and Economic Development Bank (IBank). The corporations administer the Government’s Small Business Loan Guarantee Program as well as the federally funded Small Business Lending Initiative program through IBank. This money helps eligible small businesses and nonprofits, especially those operating outside the core economic activity, secure fair funding and support the economy.

Of the seven development corporations, SBDC-OC also ranked first in FY 2023-24 in total amount of guarantees approved and total amount of financing provided by the pool of lenders in the guarantee program.

Loan Guaranty is IBank’s longstanding flagship program of many and offers guarantees or collateral of up to $5 million on loans, lines of credit and other desired capital. There are currently 33 lenders approved for the loan guarantee program through SBDC-OC and listed on its website. They were brought into the program through connections with SBDC-OC leadership.

“I have known personally or professionally almost all of the new participating lenders for many, many decades,” said Jim Ely, the corporation’s president, who completed his first year at the helm, and a longtime business offering lending services to the U.S. Small Business Administration. . “They all knew me as the SBA (Small Business Administration) guy, and when they heard that I was now working with another government-guaranteed loan program, they were immediately interested,” he said. “Introducing SSBCI and SBLGP guarantees as an alternative to SBA guarantees has resonated strongly with these lenders.”

The seven lenders approved for the government guarantee program through the SBDC-OC received approximately $37 million in new loans backed by government guarantees during the last fiscal year. Total loan volume increased by $56,348,304. “This means that our existing lenders contributed approximately $20 million, up 26% from the prior year,” Ely said.

Banks with a BauerFinancial rating of at least 3 stars are automatically eligible to participate in the loan guarantee program through SBDC-OC and must complete a simple registration form.

Going forward, SBDC-OC plans to improve the credit quality of its portfolio by placing greater emphasis on the business’s demonstrated repayment ability, meaning historical operating results should reflect more than adequate cash flow to repay the loan, Ely said.

Reflecting on his first year as president, Eli reflected on his reasons for taking on the position and his desires for the company’s future development. “I didn’t take this job because I needed a job,” he said. “I took it because I thought it would be fun. Our website address and email footers say “sbfdoc”. I want it to mean, “Giving back should be fun.”

Michael Ocasio, SBDC-OC’s chief executive officer and co-founder of the corporation founded in 2001, has expanded its programs over the years to include participating lenders, board members and employees. “I am very proud of Jim and our team of talented and dedicated people who work so hard to ensure our state’s small businesses, entrepreneurs and nonprofits have access to the capital they need,” he said. “We celebrate our team’s accomplishments over the past fiscal year, but mostly we celebrate the success of the business owners we have supported who are now able to move their businesses forward and positively impact the state’s economy, which benefits us all.”