Today’s video blog is about a recent change to the SBA 504 refi program that is very good news for lots of business owners and their advisors. Watch the video below to hear all about it, and also find out how to register for our complimentary 504 refi webinar I’m hosting tomorrow.
If you haven’t registered for tomorrow’s webinar yet, go to bit.ly/504RefiExplained right now to reserve your spot. You only have one day to do so, and there are a limited number of lines. If you have questions about the 504 refi program, email them to me ahead of time at ChrisHurn@MercantileCC.com. I’ll make sure they get answered on the webinar, and you won’t have to wait in line during the Q&A session at the end of the call.
Dedicated to Your Continued Success,
Chris
P.S. If you know of someone who needs to be up-to-date on the SBA 504 refi program or should be on the webinar tomorrow, be sure to forward them this information pronto!
P.P.S. Don’t forget, you can always find helpful information about SBA 504 refis at www.SBA504LoanRefi.com and about “regular” SBA 504 loans at www.504Experts.com.
Tags: 504 loans, 504 Refi, 504 Refinance, commercial property financing, Commercial Real Estate Loans, Mercantile Capital Corporation, SBA 504, SBA 504 Experts, SBA 504 Loan, SBA 504 Refi, SBA financing, SBA Refinance, Small Business Administration, small business financing
Pat Alexander says:
That’s great. Thanks.
Bill McQuinn says:
Your video encourages business owners to “tap into equity” through the SBA 504 refinance program.
I gather this is not really the case at this time. The refinance program does not allow additional cash out for other business purposes, even though this had been included as a provision of the Small Business Jobs Act.
Do you anticipate any changes coming in this regard? Is the agency, in fact, likely to allow borrowers to access equity they have accumulated in their real estate and long term equipment?
This would be a tremendous benefit for businesses that still have limited access to revolving lines of credit and other sources of working capital.
Chris Hurn says:
While I did mention that, Bill, at this present time the Agency still has not revealed how this portion of the law will coming into play. Since they changed the maturity issue about one month after issuing the first regs on this (nearly 6 months after the Small Business Jobs and Credit Act was passed in late September), I remain hopeful that this “working capital” portion will be rolled out in the coming months (hopefully weeks) ahead. When it does, I will surely let people know about it.
Bill McQuinn says:
Thanks for your quick reply.
It is utterly counter intuitive that borrowers with 50% equity in long term assets have zero opportunity to participate in the SBA 504 refinance program. Instead, they are pushed into the floating interest rate environment of SBA 7(a). Or have no solution, because their financing need exceeds 7(a) size limitations.
(Maybe the agency thinks this is unnecessary, because borrowers with substantial equity can access money without SBA credit enhancement? Think again.)
It seems to me if there is solid equity, then SBA should provide something like 40% of total financing and have senior lenders provide 60%.
Until they get comfortable with this sort of split, how will they ever get comfortable funding additional cash expenditures?
Chris Hurn says:
Well, Bill, that’s one of the major issues that Mr. Smits is dealing with at the Agency at the moment. Fortunately, there is precedent with 7(a) loans regarding documented, working capital, legitimate business expenses that will eventually be covered (temporarily) with 504 loans as part of this law – and that’s what I told Grady Hedgespeth at the SBA’s Public Hearing about this law in Boston last November. Can’t happen soon enough, IMHO – that’s what I was lobbying in DC about last week, and following-up with the Congressman and their staffs about yesterday. We’ll see . . .