New Small Business Refinance Program to Launch June 24
Under the new refinance program, small businesses can take advantage of lower rates, fixed for 20 years, to lighten their monthly debt payments, improve cash flow and stabilize operations. The program allows for refinancing commercial real estate debt as well as other business debt and expenses.
Here are some of the guidelines for the new program:
A Certified Development Corporation
As of April 21, 2014 the U.S. Small Business Administration (SBA) eliminated provisions that prevented small business owners with a high-net worth to purchase commercial real estate with a SBA-504 loan. These changes will enable more small businesses to qualify for SBA loan to purchase commercial real estate and/or long-life equipment.
Personal Resource Test Eliminated. Business owners are no longer subject to SBA’s Personal Resources Test which restricted high-liquidity individuals from using SBA programs.
9-Month Rule Eliminated. If an expense can be documented and justified for the benefit of the small business and towards a Commercial Real Estate purchase, this expense can be counted towards the total project.
These new changes will allow more small business to take advantage of SBA 504 financing.
On April 5, 2018, SBA released Information Notice 5000-17058 announcing the availability of a 25 year maturity for 504 Loans and the Debentures that fund them. This is in addition to the 10 and 20 year 504 Loan and Debentures that are currently available in the 504 Loan Program.