AVANA CUSO Hosts Webinar to Educate Credit Unions on SBA 504 Loans

Expert panel showcases benefits of SBA loans for portfolio diversification and community wealth building

GLENDALE, Ariz.--(BUSINESS WIRE)--AVANA CUSO, a credit union service organization that specializes in commercial real estate lending, announces an educational webinar focused on helping credit unions understand the benefits of SBA 504 loans. The virtual event, scheduled for September 25 at 10 a.m. PT, will provide essential guidance on eligibility requirements and investment opportunities for financial institutions seeking to diversify their portfolios while fulfilling community service obligations.

The webinar will feature industry experts with collective experience of closing over $5 billion in SBA loans, led by AVANA Companies CEO Sundip Patel and featuring AVANA’s Chief Credit Officer, Matt Hunt, and Executive Vice President and Head of Underwriting, Candace Sheets. The session is designed for credit unions seeking to understand how SBA 504 loans can help them meet Community Reinvestment Act (CRA) requirements while offering low-risk investment opportunities.

"We're committed to educating credit unions about financing options that can help small business owners build wealth through real estate property ownership," said Patel. "SBA 504 loans represent a significant opportunity for financial institutions to support their communities while diversifying their portfolios."

The webinar will highlight how the SBA 504 loan program offers significant advantages for credit unions, including portfolio diversification, and reduced risk due to the low LTV provided by the SBA 504 program. These benefits provide an attractive alternative to conventional lending options while supporting community development goals.

"Credit unions are navigating tightening rate margins and limited capital for commercial lending, while small business owners face higher interest rates and rising property values that make acquiring commercial real estate seem out of reach," said Hunt. "The SBA 504 program bridges these challenges by giving credit unions a low-LTV 1^st lien position that is more secure, while providing borrowers access to low, long-term fixed rates and as little as 10% down compared to the 25-30% typically required for conventional loans."

The session will cover the specific eligibility requirements for SBA 504 loans, which are designed for U.S.-owned, for-profit small businesses with a net worth under $20 million and after tax net profit under $6.5 million. Participants will learn how these loans require as little as 10% down payment from borrowers, feature fixed interest rates with terms up to 25 years, and can be used for purchasing real estate, equipment, and the construction of new facilities.

"SBA 504 loans provide exceptional financial stability through their fixed-rate structures," said Sheets. "These loans allow financial institutions to support entrepreneurs in their communities while maintaining strong portfolio performance and meeting their mission of community service."

The webinar is free to attend and will include a Q&A session where participants can address specific questions to the expert panel. To learn more and to register, visit https://avanacuso.com/unlocking-sba-504-lending-for-credit-unions-pr/.

About AVANA CUSO:

Established in 1998, AVANA CUSO is one of the most seasoned credit union service organizations (CUSO) with a focus on commercial real estate lending. Driving excellence through end-to-end customer service and our investments in technology, AVANA CUSO supports credit unions, including connecting them with commercial real estate entrepreneurs, brokers, and small business owners through participatory lending.

Our mission is to help credit unions diversify their lending portfolios by expanding their lending programs beyond local communities, mitigating concentration risk while enhancing loan-to-share ratios.

Part of the AVANA Family of Companies, AVANA CUSO strives to improve communities by funding socially responsible projects that boost economic growth and foster job creation. AVANA CUSO is headquartered in Glendale, Arizona.