SBA announces the return of the 504 loan refinance program
In late May of this year the Small Business Administration (“SBA”) has re-established the debt refinancing program consistent with the more well- known SBA 504 loan programs. The 504 loan program was historically only available to purchasers of commercial property. The debt refinancing program, while available several years ago, was temporary. The program, which expired in 2012, is has now been made permanent.
The benefit of SBA financing, and more specifically, debt refinancing, is that borrowers who are approved and funded have a fixed mortgage rate for 20 years. In today’s commercial loan market, it is very difficult to obtain fixed rate financing, and almost never for 20 years. Also, the interest rates which are set at funding have recently seen historic low rates. For June 2016, the 20 year rate was about 4.3%.
Applications are being accepted after June 24, 2016 and borrowers have to meet certain criteria, including, but not limited to, that the debt being refinanced must be “qualified debt” as that term is defined in the act, the borrowers must be current on their existing debt payments for at least one year prior to applying, and the assets to be secured (real estate or personal property) must qualify as “eligible assets.” There are a host of other rules and regulations concerning these government guaranteed loans. Therefore if you are interested in learning more about the SBA 504 Debt Refinance Program, the lawyers at Baker, Braverman & Barbadoro can answer your questions and introduce you to a Certified Development Company that can assist you with an application.
from QUINCY ATTORNEYS-Baker, Braverman & Barbadoro P.C. 300 Crown Colony Dr #500 Quincy, MA 02169 (781) 848-9610 http://ift.tt/1Q5JqvQ
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