Merger will consolidate SBA 504 Lending under PeopleFund
Austin, Texas – Both the Small Business Administration (SBA) and the State of Texas have approved the merger of PeopleFund and Certified Development Corporation of the Southwest (CDCSW). Under the terms of the merger PeopleFund will be the successor organization, effective June 1, 2019.
The purpose of the merger is to create an economy of scale beneficial to Texas small businesses in the delivery of the SBA 504 loan program. According to Mike Mora, CDCSW President/Managing Director, “The benefit of this merger is to combine the experience of the CDCSW staff with PeopleFund operational, administrative, and financial expertise and extensive geographic coverage.”
The SBA has already realigned both companies SBA 504 loans under PeopleFund. “Mike Mora and his team have over 80 combined years of SBA experience,” observed Gary Lindner, PeopleFund President. “ We are so fortunate to have Mike’s leadership and his teams’ professional SBA 504 credentials that will help boost loan opportunities across the state”.
The CDCSW staff will relocate to the Dallas PeopleFund Office at 2801 Swiss Avenue, Suite 120. This will facilitate the transition of administrative, technical and operations functions.
PeopleFund Board Chair Yolanda Davila, was enthusiastic about the merger. She commented “This combination is a win-win for small businesses in Texas. The more collective opportunities for capital and community development, the better.”
PeopleFund, with corporate headquarters in Austin, serves Texas with multiple loan products and satellite offices throughout the state. It is one of a select group of Community Development Financial Institutions (CDFI’s) certified for SBA Micro Loans, SBA 7A Community Advantage loans, and SBA 504 loans. Under terms of the merger, Mike Mora will apply his vast experience as PeopleFund’s Director of SBA 504 Lending.
PeopleFund is a registered 501(c)3 nonprofit organization established in 1994. It is a U.S. Treasury certified Community Development Financial Institution (CDFI) and SBA certified lender. PeopleFund provides business loans up to $350,000 to Texas businesses that do not qualify for bank loans. It also provides client business assistance and education. 97% of loans are to target market of minority, women, and veteran business owners and those residing in low to moderate income census tracts. 59% of current loans are to startups and non-profit organizations. Through access to capital and educational opportunities, PeopleFund creates economic opportunity and financial stability for underserved people to build healthy small businesses. PeopleFund inspires, educates, funds, and elevates entrepreneurs on the path to prosperity and the American dream. www.peoplefund.org
The Certified Development Corporation of the Southwest (CDCSW) is a statewide economic development organization headquartered in the Dallas/Fort Worth Metroplex in Texas. We assist in financing growth through investments that help businesses become more competitive in the marketplace. CDCSW makes loans to qualified businesses in the startup, acquisition or expansion phase by utilizing the SBA 504 loan program. Our role is to package, process, close, and service the loans. We are a direct lender for the SBA 504 loan program. It is the mission of the Certified Development Corporation of the Southwest (CDCSW) to foster economic development by stimulating the growth of small businesses and job creation through the access of long term capital markets. We do so by providing a unique method of asset acquisition with minimal equity participation and below market, fixed-rate, long-term financing.