America’s small business landscape is undergoing a profound structural shift driven by two converging forces: a generational transfer of ownership on an unprecedented scale, and an accelerating demand for attractive real estate financing among younger, established business owners. At the same time, America’s credit unions are in desperate need of younger members. This paper introduces the SBA 504 program as a sustainable, risk-mitigated growth solution for business owners and credit unions alike.
Key Takeaways:
- More and more Baby Boomers are passing the torch of business ownership, creating space for Millennials and Gen X to step in and continue their legacy.
- The exodus of retiring baby boomers coupled with the increase in younger small business owners creates a rapidly growing opportunity for credit unions to acquire new Gen Z, Millennial and younger Gen X members.
- A significant segment of small business owners who leveraged SBA 7(a) financingto establish their operations are now positioned acquire commercial real estatethrough the SBA 504 loan program to build equity and ensure the long-term stability of their business or expand their footprint.
- SBA 504 lending provides credit unions with risk-mitigated loan portfolio growth while satisfying financing needs of younger business owners.
- AVANA CUSO is an experienced SBA 504 facilitator for credit union member acquisition, loan and deposit growth.
