Restore the SBA Refi Program – Pass the CREED Act
In an effort to bring the SBA 504 refinance program back to small businesses, TMC has started a petition to demonstrate support for this legislation.
• Please sign our petition to congress here:
We are asking elected officials in Washington D.C. to support the zero subsidy S.289 CREED Act of 2013 (The Commercial Real Estate and Economic Development Act).
• Sponsored by Senator Mary Landrieu and co-sponsored by Senator Jeanne Shaheen:
“Extending the 504 refi program is a common-sense way to help small businesses and create jobs without costing taxpayers a single penny. The program, which is completely separate from SBA’s traditional 504 program, is zero-subsidy, requiring no cost to the taxpayer: It will be funded entirely through additional fees assessed for refinancing projects.”
Why we need it:
• The refinance portion of the Small Business Jobs Act of 2010, did not become fully operational until February 2012.
• This legislation allowed small business owners that had commercial mortgage loans with high interest rates or balloon payments coming due, to refinance a portion of their debt using the SBA 504 program.
• Although the program was supposed to last 2 years, a delay in issuing the final rules shortened small businesses access to the program to less than 7 months.
• When it expired on September 27, 2012, there were over 400 small business applicants nationwide who were unable to take advantage of this program, and the SBA Processing Center in Sacramento could not process all of the applications before the deadline.
• During its short availability, the SBA approved over 2,400 mortgage refinancing projects for over $2.2 billion.
• CDCs like TMC are still receiving inquiries regarding access to low-interest refinances for commercial real estate.
Click here for the impact of the refinance program on a TMC client, VSR Industries, Inc.