Monthly news & updates
March 2022
President Biden Signs Funding Bill; Increases SBA 504 Authorization Cap
Women's History Month Feature: AmPac Business Capital Office Buildout Led by Women
Success Story: SBA 504 Finances Two Purchases for Growing Woman-Owned Wholesale Textile Business
SBA Corner
Current Interest Rates*

10 year loan.......3.81%
20 year loan.......3.76%
20 year refi.........3.77%
25 year loan.......3.92%
25 year refi.........3.94%

*As of 3/11/22
Client Testimonials

"It has been a true pleasure working with AmPac to obtain our SBA financing. Our SBA approval process was challenging and without your persistence and commitment to our project, I don’t believe it would have ever happened. Once SBA approval was obtained the remaining process through the debenture funding was smooth and efficient. We are grateful for all your assistance and very much enjoyed working with AmPac."

~ Rick Hughes, Big Easy RV & Boat Storage

"I’ve always loved the beauty industry and decided to leave my old trade for this one because I was able to work just as hard for myself as I have for others. Never did I imagine Covid-19 would come and stop me from doing that! Being that we were forced to stay home and not provide any clients services; I decided to start to educate myself. Two things were for certain; I needed to venture into e-commerce and investing. I applied for a grant from @AmpacBusinessCapital and @americanbusinessbank in hopes that I would receive one to be able to launch a product that would transition me into e-com! I received an email and was instantly filled with so much joy I cried! Someone believed in my vision as well! One of the requirements was that I was to go through a series of trainings that I did not hesitate to complete. Some of the main takeaways were that I need to separate myself, my books and my finances. I did just that! I now operate my own S-corp, have a responsive website to conduct business and a corporate bank account. Thank you so much for believing in my vision AmPac Business Capital! "

~Ashley of Glam By Ashley
President Biden Signs Funding Bill; Increases SBA 504 Authorization Cap

Source: The Coleman Report

Congress passed the $1.5 trillion Omnibus Appropriations Funding Package, and President Biden signed the bill on March 15, 2022.

The SBA programs’ spending caps are outlined in the nearly 3,000-page long omnibus.

  • The SBA 7(a) program has a $30 billion allocation for the entirety of fiscal year 2022, which includes the $9.1 billion already approved in the 7(a) program.
  • The SBA 504 program has an authorization level of $11 billion for FY22. There is nearly $5 billion in approved 504 loans as of March 11, 2022, but we expect that the 504 program will not reach this lending cap before September 30, 2022.
  • The 504 debt refinance without expansion program will have an authorization level of $4 billion.

“As small businesses continue to recover from COVID, we must ensure they have access to the capital needed to grow. I worked to ensure this omnibus provides ample funding to SBA loan programs that help entrepreneurs start and grow their businesses,” says Nydia Velázquez. “Small businesses are the backbone of the American economy and leading the way in our recovery. This package will help ensure they have the resources needed to continue to push us forward.”

With the success of the SBA 504 loan program where small businesses can take advantage of low cost, fixed rate financing to own their business commercial real estate, or buy equipment or complete construction or major renovations, the $11 Billion will allow SBA CDCs to partner with local banks, credit unions and non-bank lenders to assist small businesses of all sizes.
 
The SBA 504 refinance program is well funded at $4 Billion and CDCs can partner with banks to refinance conventional, sellers carry and government backed loans, including SBA 504, SBA 7a, USDA and other government backed loans.
 
Ask AmPac about these SBA 504 loan programs.
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Women's History Month Feature: AmPac Business Capital Office Buildout Led by Women
When Hilda Kennedy, President and Founder of AmPac Business Capital, decided to purchase a building for her growing business, it was an easy decision to make in choosing a commercial interior design company. She had received multiple referrals and they all pointed to Sisson Design Group, a woman-owned commercial interior design firm, based in Ontario, CA.

Sisson has provided planning and design services for various corporate, educational, medical, governmental and hospitality projects throughout Southern California and the Western United States. Key projects include a remodel of Avery Products Corporation’s 77,252 square foot office space in Brea, California and design services for the San Bernardino Valley Municipal Water District involving a complete build-out of their new office building and board room.

For AmPac, Hilda was looking for someone to do the planning, design and construction drawings required for obtaining the building permits.

“I met Hilda at the building, and she explained to me what her vision was for the new office from a business and design standpoint,” said, LeeAnn Sisson, principal of Sisson. “We took Hilda’s vision and made it a reality. During the design phase, we presented several different concepts and interior finish options, from which the AmPac team selected their final design concept. We then took those decisions and drew the detailed interior tenant improvement drawings and designed the interior and exterior signage for the building.”

After completion of the drawings, Sisson also coordinated obtaining the city permits and the contractor bids. Through the bid process, Hilda selected Vejar Construction, a woman-owned firm based in Riverside, CA, to be her contractor. Brenda Vejar, who heads Vejar Construction, has lead the company to be ranked in the top 4% of California licensed contractors (according to Build Zoom) and to win the 2021 Project of the Year Award (interior commercial category) for its work on the Riverside Main Library.

 AmPac, Vejar Construction and Sisson worked collaboratively throughout the construction process until completion of a beautiful, state-of-the-art office.

“For the AmPac project, I am the proudest of being an integral part of making Hilda’s vision a reality. I really enjoyed working with the women on this project. We were all very comfortable with each other, and it made the project go smoothly!” said Sisson.
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Success Story: SBA 504 Finances Two Purchases for Growing, Woman-Owned Wholesale Textile Business

HIGHLIGHTS

2019 Project #1

Loan Purpose: Purchase of $18,560 sf warehouse in Pico Rivera

Purchase Price: $3,201,600

Job Created: 2

Financing: 90% financing. No additional collateral needed. 3.02% 25 year fixed
6 months CARES Act payment subsidy



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2021 Project #2

Loan Purpose: Purchase of $46,416 sf warehouse in Lynwood, CA

Purchase Price: $9,850,000

Job Created: 10

Financing: 90% financing. No additional collateral needed. 3.15% 25 year fixed
6 months CARES Act payment subsidy
($9000 per month cap)
In 2019 a family operated textile business, with four locations, was in need of additional warehouse space to accommodate a new line of licensed products. Having used the SBA 504 for previous property purchases, they knew this was the best way to finance the new building and retain cash to support their continued growth.

With the COVID crisis in 2020, the owners were concerned what the future held. But with primary products being consumer household textiles, the demand for products grew and these savvy business owners saw new product markets to tap leading to a record sales year. By spring of 2021, they were ready to purchase another warehouse.

They contacted AmPac to see what they could qualify for under the SBA 504. A pre-approval letter was quickly provided, allowing them to make an offer on a 46,416 SF warehouse that was accepted and the purchase closed. The large warehouse allowed them to bring in more inventory and to consolidate two of their locations into one for greater efficiencies.

AmPac is thrilled to build a relationship with this growing, woman-owned, family business. We are already discussing their future purchases using the SBA 504 Green public policy to allow for further 504 financing with the addition of solar panels generating energy savings.
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SBA Corner
U.S. Senators Applaud SBA Administrator Guzman’s Decision to Extend Additional Deferment to Existing COVID Economic Injury Disaster Loan Program Borrowers

WASHINGTON – On Tuesday, March 15, Administrator Isabella Casillas Guzman, head of the U.S. Small Business Administration (SBA) and the voice for America’s 32.5 million small businesses in President Biden’s Cabinet, announced a major policy change to the SBA’s COVID economic relief portfolio to provide more flexibility to small business owners impacted by the pandemic, especially those in hard-hit sectors. Starting immediately, as directed by Administrator Guzman, the SBA will provide additional deferment of principal and interest payments for existing COVID Economic Injury Disaster Loan (EIDL) program borrowers for a total of 30 months deferment on all approved COVID EIDL loans.

Alongside the President’s vaccine strategy and global leadership in managing the pandemic, the SBA’s pandemic relief programs, including the COVID EIDL program, have been critical pieces in getting Americans safely back to work, powering our historic economic recovery, and helping small businesses navigate challenges caused by recent variants, as well as supply chain and inflation challenges. The COVID EIDL program, alone, has allocated more than $351 billion in relief aid to 3.9 million borrowers, including to the smallest of small businesses from historically underserved, disadvantaged communities. 
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How HR 5050 Changed Entrepreneurship for Women
By Deborah Sweeney for Forbes

Women were not able to obtain business loans 30 years ago.

Most people doubt me when I share this fact, so I decided to dig in to the legal history for confirmation. While there were not any laws specifically prohibiting loans to women entrepreneurs, the facts show that business loans to women simply were not issued. It wasn’t until 1988 that people began to take notice that women business owners could contribute to the economic growth of the United States. As a result, a study, and ultimately new laws, were drafted to enable women to receive loans for new businesses they wanted to finance.


The year 2018 was the 30-year anniversary of the HR 5050: Women's Business Ownership Act of 1988 (“WBOA”). This was an Act introduced by John LaFalce, a former New York congressman, aimed at aiding the success of women business owners. The passing of this Act recognized how women could change the entrepreneurial landscape and allowed women, for the very first time, to take out business loans in their own name. This is the first legislation that recognizes the importance of female entrepreneurs in the national economy — and it was created a mere 30 years ago.
Apply for Leap 2 Launch Entrepreneur Before Closing on May 2
This program will host 20 entrepreneurs over an 18 month program/lease term with a monthly check in targeting accountability based growth. As a part of the initiatives offered through The Entrepreneur Ecosystem sponsored by AmPac Business Capital, this program is hosted in conjunction with Ecosystem resource partners! 

The Entrepreneur Ecosystem is designed as an environment for small and medium sized businesses to build and grow to greater success. We offer private offices, state of the art technology, and open work spaces for flexible hybrid co-working options. We are looking to accept and enroll 20 total business owners into our inaugural cohort. We would be very grateful if you would encourage entrepreneurs in your network to apply!

Virtual participation is encouraged through the Mobile App!
Upcoming Events
March 31, 2022

SBA Funding for Your Business (webinar)
2:00 pm-3:00 pm
Online


April 2, 2022

Taste of NAWBO-IE
2:00 pm- 5:00 pm
Europa Village Winery


April 7, 2022

Leaving in Style Book Signing
4:00 pm- 6:00 pm
AmPac and Online


April 21, 2022

CREW-IE In-Person Networking Luncheon and Expert Panel
11:45 am-1:00 pm
Online



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Have You Downloaded the Entrepreneur Ecosystem App Yet?
At your fingertips, on your mobile device, you can access this amazing resource center. Use the app to contact resource partners, book conference and meeting rooms, discover upcoming events and more!
AmPac Business Capital | ampac.com |
909-915-1706
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