Press: On The Money
As published in the San Francisco Business Times by Mark Calvey on Thursday, November 18, 2010.
On the Money: More businesses eligible for SBA-backed mortgages by Mark Calvey
More mid-sized, private companies will be eligible for financing commercial real estate through the SBA’s 504 loan program based on a new federal law.
The legislation passed in September also allowed the Small Business Administration’s 504 program to be used to refinance qualifying, owner-occupied commercial real estate loans. Some business owners are finding their commercial mortgages are coming due and the falling value of their buildings no longer support traditional bank financing.
TMC Development and its counterparts are trying to get the word out on the SBA’s expanded offerings.
“Today, virtually any privately held company can be eligible for SBA financing,” said Barbara Morrison, TMC’s founder and president. “SBA can finance commercial real estate purchases in excess of $20 million.”
She anticipates the SBA will issue rules and regulations on making these larger loans in the first quarter of 2011. Morrison also anticipates a learning curve among middle-market bankers, who previously considered their clients too large to qualify for traditional SBA loans under the 504 program.