SBA 504 refinance expected soon
Soon small business owners will be able to refinance commercial real estate loans with the attractive rates and terms available through TMC’s SBA 504 loan program.
Rules for the permanent SBA 504 refinance program authorized by Congress late last year are expected in the coming weeks.
“We expect the rules to be similar to the 2012 temporary refinance program,” TMC EVP Rich Grant said, “so we’re telling interested small business owners to get started with prequalification. Congress added some restrictions, including limits that may make applying early beneficial.”
The 2012 temporary SBA 504 refinance program allowed small businesses to use excess equity in fixed assets to obtain working capital that can be used for financing eligible business expenses (salaries, rent, utilities, inventory, pay off or down business line or credit or other business obligations). Borrowers could refinance up to 90 percent of the current appraised value, and included these requirements:
- 85% or more of debt must have been used for 504-eligible purposes
- Debt must be more than 2 years old
- Debt must be secured by eligible fixed assets
- Business must have been in operation for two years or longer
Currently the 504 program allows refinance of existing debt as part of a qualified business expansion. If you have questions about refinance, contact us or sign up to be notified as refinance program details become available.