Cincinnati, OH – July 25, 2017- The U.S. Small Business Administration (SBA) has officially approved a Plan of Merger between HCDC, Inc. of Cincinnati, Ohio and Stark Development Board Finance Corporation of Canton, Ohio. Both organizations are Certified Development Companies (CDCs) providing financing through the SBA 504 Loan Program to small businesses.
“The only constant is change. This includes the SBA, which is changing the requirements for administering the 504 Loan Program, as well as the operations of a CDC. The options are either to grow or leave the industry. HCDC, in the merger with Stark Development Board Finance Corporation, welcomes the opportunity to expand its lending operations to businesses in Canton and Stark County as well as East Central Ohio, the latter of which is an underserved lending market,” says David Main, President and CEO of HCDC, Inc.
“This was a good fit for the Stark Development Board Finance Corporation. HCDC is a leader in SBA lending and this merger gives us an opportunity to expand and improve our loan programs. The goal is to give our business community the tools needed to expand operations and add jobs,” says Ray Hexamer President and CEO of Stark Development Board, Inc.
As the SBA has increased requirements for CDCs and the processing of SBA 504 loans, smaller CDCs may have to consider one of three options:
- Continue operations, which may not be financially feasible
- Turn over their loan portfolio to the SBA, who would subsequently divide up the loans and distribute them amongst other local CDCs
- Merge with a larger CDC
In the case of Stark Development Finance Corporation, the organization chose to merge with HCDC, the largest CDC in Southwest Ohio. With this merger, Stark Development Board Finance Corporation was dissolved, and its portfolio of SBA 504 and Ohio Regional 166 loans was transferred to HCDC, Inc., as the surviving entity.
Under the Plan of Merger, HCDC, Inc. will now market, underwrite, and close SBA 504 loans in northeastern Ohio through a partnership with Stark Development Board.
About HCDC, Inc.
Established in 1983, HCDC, Inc., formerly Hamilton County Development Co. Inc., helps build businesses and promote job creation in three ways: Business Incubation, Business Lending, and Economic Development services. Born out of a need to create jobs to counter a shrinking manufacturing sector, HCDC has nurtured over 300 resident entrepreneurial companies, financed over $1 Billion in loans, assisted economic development projects with over $3.2 Billion in investment, and has helped retain, attract, and create more than 47,000 jobs in Southwestern Ohio. For more information on HCDC, Inc., visit: www.hcdc.com.
About Stark Development Board, Inc.
Stark Development Board, Inc., based in Stark County, Ohio, is a private non-profit founded in 1985 by local business and community leaders. The organization has been operating a Certified Development Company called Stark Development Board Finance Corporation that packages SBA 504 loans and Ohio Regional 166 Loans for small businesses. The organization also administers the Stark County Port Authority. For more information visit: http://starkcoohio.com/.