With the passage of the omnibus bill to fund the federal government for the remainder of FY16, Congress permanently reinstated the SBA 504 debt refinancing program.
“This is a wonderful holiday gift for the nation’s small businesses and our economy,” Rich Grant, TMC executive vice president, said of the new law. “Half of small businesses say lack of financing prevents them from hiring additional workers. This debt refi program allows small business owners to refinance existing owner-occupied real estate debt, which frees up capital for growth, expansion and hiring.”
A few restrictions were added, namely that the program can only be used in years that both standard 504 and the refi program are at zero subsidy. The SBA will carefully analyze changes and re-examine the last refi program before issuing new regulations, a process that is expected to take a minimum 4-6 months.