Effective October 12, 2011, under the Small Business Jobs Act, the SBA has implemented a temporary program—authorized until September 27, 2012—allowing small businesses to refinance eligible fixed assets in its 504 program without requirement of an expansion. This program provides some changes to the new SBA 504 Refinance Program that will be a big help to small business owners. In short, the changes make it easier for more small business owners to qualify for this extremely helpful program.
Here are the two main highlights:
1. It’s now possible to use refinance proceeds for itemized business expenses such as salaries, rent, utilities, inventory, paying-down payables, and other obligations of the business. (This has the potential to help kick-start the small business economy and get it back on track.)
2. Borrowers with loan deferments and/or modifications on their conventionally-financed owner-occupied commercial real estate are now eligible for refinancing as long as they’ve not been past due (more than 30 days) on the terms of their deferment/modification.
If you know someone who should look into the SBA 504 Refi Program, please contact us.
Here are the two main highlights:
1. It’s now possible to use refinance proceeds for itemized business expenses such as salaries, rent, utilities, inventory, paying-down payables, and other obligations of the business. (This has the potential to help kick-start the small business economy and get it back on track.)
2. Borrowers with loan deferments and/or modifications on their conventionally-financed owner-occupied commercial real estate are now eligible for refinancing as long as they’ve not been past due (more than 30 days) on the terms of their deferment/modification.
If you know someone who should look into the SBA 504 Refi Program, please contact us.
