The ABJ 2023 list of SBA 504 third-party lenders focuses on banks that fund a portion of SBA-backed loans made in the Austin-area. Only lenders with local branches are considered for this list. Loan information is supplied by the Small Business Administration (SBA) for loans made for projects in the Austin area between Oct. 1, 2022 and Sept. 30 2023. The 16 third-party lenders on the list with local operations made 26 loans totaling $92.4 million. Overall, $131.6 million was approved to fund 35 projects in the Austin area during this time. The total includes both CDC and third-party lender amounts for all lenders, even if not local. Third-party lenders, usually banks, partner with a CDC to fund projects approved by the SBA. CDCs are nonprofit entities certified by the SBA that partner with banks to make loans. The SBA does not make the loans but guarantee's the CDC portion. Third-party lenders will fund 50 percent of the total project and the CDC will fund up to 40 percent. 504 loans are typically used for construction, commercial real estate, equipment purchase and other large asset investments. Maximum loan amounts typically top out at $5 million. See also related ABJ lists of SBA 504 CDC lenders and SBA 7(a) lenders.
