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KeyBank Leads Region in SBA 504 Lending
CLEVELAND -- KeyBank ranks first among area banks in SBA 504 loan production for fiscal year 2004, financing a total of 17 loans in conjunction with certified development companies active through the SBA Cleveland District Office as evidenced by Key's recent receipt of Cleveland-based Growth Capital Corp.'s Bank of the Year Award.In northeast Ohio, Key nearly tripled its number of 504 loans over 2003, six of which were approved with Growth Capital Corp. for a total of $2,598,500. Growth Capital Corp. provides financial assistance to area businesses in support of the Growth Association's overall mission to foster economic growth and job creation in northeast Ohio.Key's top ranking and award-winning performance follow a record year in 504 loan approvals totaling 108 through the SBA Cleveland District office, a 33% increase over fiscal 2003.SBA district director Gill Goldberg, who notes that the SBA's job creation goal tied to each 504 project is one job for every $50,000 in lending, would like to see 504 loan approvals jump to 150 next year, with banks like Key leading the way. "Our projected increase for fiscal 2005 is significant and achievable," Goldberg said. "The number of 504 loans approved this year over last is a true sign of economic recovery, based on business acquisitions and new constructions the loans are affording across northeast Ohio. Our 504 loans are an engine for economic growth. As interest rates edge higher, now is the time to take advantage of 504 financing."Goldberg notes that Key's recent work with Washington D.C.-based Social Compact to uncover hidden economies in Cleveland is stirring even more interest among growth-minded companies in the position to benefit from 504 and other forms of financing. "We'll look to Key among other banks for their continued leadership in this area," he said.Since jointly announcing the Social Compact study findings with the City of Cleveland last month, Key has issued more than 100 copies of the study reports to area community development corporations, business developers, real estates brokers, and entrepreneurs, all with an interest in tapping into Cleveland's uncovered $828 million cash economy. As a result, Key is in the position to be more receptive to lending to those using the study as part of their business cases, according to Cleveland District President Elizabeth Oliver.In addition to increasing its 504 lending, Key this year is experiencing a 17% increase in overall local business lending, whichOliver attributes to more than the economic upswing. "As area businesses look for new, more dynamic ways to grow, we've done our work as well by putting more feet on the street," she noted. "We've hired six additional relationship managers this year including experienced private sector business owners and veteran in-market bankers. All 18 are talented professionals collectively carrying an expansive level of knowledge that we're passing along to clients we advise. As well, Key's new SBA lending officers, John Moshier in Cleveland and Tony Rufo, who serves Akron, Canton and Youngstown, are making a big difference."As a result of a Key-financed 504 loan, Cleveland-based logistics company Mercury Messenger and Freight recently consolidated its warehousing operation into a single facility through which Mercury President Dominic Cirigliano said his business is streamlining its operations to the benefit of area business customers. "We simply outgrew our previous facility," Cirigliano said. "With Key's loan, the construction of our new Strongsville warehouse gave us a whole new outlook. The cost efficiencies we've realized through expanded storage and delivery capabilities translate to cost-efficiencies and enhanced services for our customers, who no longer have to lease their own space. Essentially, we're passing on our savings to our customers, and that's good business."Growth Capital is affiliated with the Greater Cleveland Partnership, one of the nation's largest metropolitan chambers of commerce. Since 1982, Growth Capital Corp. has provided financing assistance to area businesses in support of the Greater Cleveland Partnership's overall mission to foster economic growth and jobs creation in northeast Ohio.Visit KeyBank: www.key.com"