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Since the Small Business Jobs & Credit Act was passed a year ago, we’ve been able to finally use SBA 504 loans to refinance commercial property. Fortunately, a few hundred business owners have been able to avail themselves of this program to get control over their real estate expenses with the long-term, fixed-rate financing that a 504 loan provides. But that’s about to change…

Another provision in the law mentioned the ability to use SBA 504 Refi proceeds for legitimate business expenses (working capital, essentially).  Well, we waited a whole year for the SBA to announce how this part of the law will be applied, and they finally told us yesterday. I probably don’t have to tell you how big a deal this is, and how meaningful this will be for a vast number of small business owners. This is what some people might call a “game changer.” (Not me, though. I would simply say this is “about time.”)

Watch the video below to get the full details about these new changes to the SBA 504 Refi Program — the one I’ve mentioned above isn’t the only significant change…

Here’s a recap of what you need to know about these changes:

 »  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.)

» 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.

» The SBA has $7.5 billion in program authority for this commercial real estate and equipment refinance program. (But remember, this is a zero-subsidy program — it’s supported by user fees.)

» This program will expire (“sunset”) on September 27th, 2012. (So, it’s important to get started on this right away…while interest rates are still at historic lows.)

 Again, this is a nice shot-in-the-arm for America’s small businesses, and we need to spread the word. If you own your commercial property, or you know someone who owns their commercial property, and want to learn more about how an SBA 504 Refi can help your business, then call me at 1-866-622-4504 or email me at ChrisHurn@MercantileCC.com right away. You can also leave a comment below and I’ll respond that way. In fact, I’d be interested to hear what you think about these changes to the program and what it means for you or someone you know, so be sure to leave a comment and share this with (forward it to) somebody else who needs to read it.

Thanks in advance!

Dedicated to Your Continued Success,

Chris

P.S. If you want to read more about the details of the SBA 504 Refi Program, go to www.SBA504LoanRefi.com.

Tags: Business_Finance, commercial property financing, commercial real estate loan, loan refi, loan refinance, SBA 504 Loan, SBA 504 Loan Refi, SBA 504 Loan Refinance, SBA 504 Refi, Small Business Administration