Even though we’re more than halfway through January, we’d still like to wish you a Happy New Year! We’re sure 2016 is going to be a great year for SBA 504 lending, but before we talk about what’s to come, let’s see where we’ve been…
Lots and Lots of Construction
For the third year in a row, about 60% of our loans involved construction, and it’s clear that this has become more than just a trend for us — it’s really who we are and what we do. We do a lot of construction because we can do it well and we like to do it. If you’re in need of financing for a 504-eligible construction project, leave a comment below or shoot us an email to let us know!
Historically, our specialty has been providing interim second mortgages (bridge loans) in order to help banks, CDCs, and other lenders make SBA 504 loans more available to small business owners. But we’ve grown into a one-stop shop that can provide both the first and second mortgages for select 504-eligible projects. We did 16 such projects in 2015, having been assisted by becoming a wholly-owned subsidiary of IBERIABANK. In the fourth quarter alone we closed five of those projects with IBERIABANK.
504 Refi in 2016
In 2015 we closed 54 loans worth more than $142 million in total project costs, and it was our best year since 2012 (affectionately referred to around the office as “refi-palooza”). Before 2015 came to a close, Congress passed a bill permanently reinstating the SBA 504 Refinance Program, and we couldn’t be more excited. We believe it’s going to be a huge help to many more small business owners than it was the first go ‘round, but we’ll have to wait a little while to see for sure. We’ve been told that it’ll take 3-5 months to issue the regulations and forms needed to get the program going again. Fear not, however — we’ll let you know as soon as we hear anything about 504 Refi (part deux).
As always, we’re here to help. If you have questions about SBA 504 loans, or commercial real estate financing in general, or if you’d like to refer someone we should work with, call or email any time.
We look forward to hearing from you! And Happy New Year!
– Your 504 Experts