Last month I was in DC lobbying to extend the SBA 504 Refinancing Program deadline…which doesn’t seem likely at this time. Because the deadline will remain September 27, it’s important to get your deals into us now.
As you recall, the SBA 504 Refinancing Program creates a unique and time-driven opportunity to reduce your overall commercial real estate portfolio concentrations, and provide an additional program to offer your small business clients.
The Program allows small businesses to take advantage of long term, fixed rate loans to refinance their high interest or maturing real estate debt or existing debt on capital assets. Loans under the 504 Program are funded by the sale of ten-year and twenty-year bonds guaranteed by the SBA. Thus, a borrower is able to obtain attractive 20 year fixed interest rates, as low as 4.95% based on April pricing.
We are starting to see business picking up across the state so it’s important to act fast if you want to offer your clients an SBA 504 refinance loan.