Growth Capital Named Top 504 Lenders to Small Businesses in Cleveland for 2005

Monday, October 17, 2005

CLEVELAND - Growth Capital Corp. was named the leading lender of Small Business Administration (SBA) 504 loans, approving 30 percent more loans than the number two lender.  Capital Growth was ranked against other CDCs in the SBA’s 28 county Northern Ohio region.

From October 1, 2004, through September 30, 2005, Capital Growth approved 35 of the SBA 504 loans, totaling $14.833 million being lent to small businesses in Northern Ohio.  In fiscal year 2004, Capital Growth approved 24 loans and was ranked second in the region. 

“The 504 Loan Program of our Agency is a true economic development program as it requires a certain level of job creation for the dollars loaned by the Agency,” said Gilbert Goldberg, director of SBA’s Cleveland district.  “The program is used for business expansions such as the acquisition of new machinery and equipment as well as plant and property.  Growth Capital, by being the number one 504 CDC in the district and by having approved thirty-five 504 loans, has helped us counter the trend of outsourcing and economic contraction.  They and our other CDCs around the district are to be commended in their efforts to provide economic development for Northern Ohio."

Capital Growth, a Certified Development Company (CDC), makes loans under the SBA 504 loan program.  The loans assist small businesses that are expanding.   The long-term, fixed interest loans are used by businesses to purchase fixed assets such assuch as land, buildings, machinery, or equipment. 

Recently hired executive director of Growth Capital, John Kropf, has attempted to increase loan production in order to enhance the reach of this economic development organization in Northeast Ohio. The improved results, a 46 percent increase in loans over 2004, are attributed to a commitment by the entire organization notes Kropf, 'We seek to build Growth Capital for volume.  I extend my appreciation to our staff, our board and our volunteer committee member, as well as to our banking partners--National City, Key Bank, Chase, First Merit, Huntington, Sky and many other community banks. Without their strong support for the SBA 504 program and their loan referrals, Growth Capital would not have the honor of being the number one CDC in northern Ohio."  

Kropf is not content with simply exceeding Growth Capital’s previous performances.  He has a goal of closing 100 loans per year as soon as 2007.

“Under its new leadership, Growth Capital brings seems to have a renewed sense of entrepreneurship,” said John Moisher, Key Bank vice president and SBA specialist.  “We look forward to continuing our work connecting resources with growing businesses and that ultimately means jobs for our region.” 

Growth Capital Corp. was founded in 1982, as a Certified Development Company, extending financial assistance to local businesses with a focus on job creation in Northeast Ohio. This economic development organization provides creative financing solutions to growing businesses through its SBA 504 and Ohio Regional 166 loan programs in conjunction with local bank lenders. It maintains an affiliation with the Greater Cleveland Partnership, the leading regional economic development organization fostering economic expansion to create jobs and wealth, and improve the economic vitality of the region. Growth Capital seeks to be the premier provider of economic development financing for small business in Ohio.

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