Chris Hurn begins by sharing his career journey, starting from a high-tech startup in Washington, D.C., then moving to GE Capital, Heller Financial, and eventually to Marsh McLennan. His career path was shaped by significant events like 9/11 and corporate acquisitions. He ultimately founded two companies: Mercantile Commercial Capital and Fountainhead Commercial Capital.
Chris Hurn has actively engaged with the U.S. Congress to advocate for policies beneficial to small businesses, particularly in the realm of SBA loans. He has testified before Congress, specifically addressing the U.S. Small Business Committee and the Committee on Entrepreneurship for the Senate. His involvement also includes submitting testimony multiple times to both the House and Senate Committees, lobbying trade associations, and pushing legislative changes like the possibility of increasing the SBA 7A loan maximum from $5 million to $10 million. Moreover, he worked closely with Senator Marco Rubio, especially during the rollout of the Paycheck Protection Program (PPP), to influence the structure and implementation of government-backed loan programs aimed at assisting small businesses during the COVID-19 pandemic.
Fountainhead Commercial Capital: Hurn describes Fountainhead as a leading non-bank lender specializing in SBA loans. It has been on the Inc. 500 list several times for its growth. They provide various types of SBA loans, including 504 and 7(a) loans, focusing on commercial real estate and business acquisitions.
SBA Loan Programs:
7(a) Loan: Offers loans up to $5 million for various business needs such as acquisitions, working capital, equipment, and commercial real estate. Terms are typically 10 years with a 90% financing option.
504 Loan: Focuses on commercial real estate and heavy equipment, allowing business owners to finance up to 90% of their project costs.
Advantages of SBA Loans:
Lower down payments compared to conventional financing.
Longer repayment terms, which helps with cash flow.
No restrictive loan covenants, providing stability during economic downturns.
Borrower Profile: SBA loans target businesses typically in the $5-20 million gross revenue range. Businesses can range from startups to larger companies, and Fountainhead provides comprehensive evaluation through third-party appraisals.
Recent Developments: The conversation touches on potential changes in legislation, such as raising the 7(a) loan cap to $10 million, and the challenges faced during the COVID-19 pandemic. Hurn recounts how they adapted during the Paycheck Protection Program (PPP) phase.
Conclusion: The interview provides insight into how SBA loans can be advantageous for small businesses looking to finance growth and acquisitions, emphasizing the importance of strategic planning and adaptability in business lending.
Reach Chris Hurn:
churn@communitybankshares.com