What's New List Serve Post Display

What's New List Serve Post Display

Below is the List Serve Post you selected to display.
omb -- SBA Update - 2/17/2011

Posted: 18 Feb 2011 08:34:22
SBA Launches Program for Refinancing Commercial Real Estate.
WASHINGTON, D.C.  Small businesses facing maturity of commercial
mortgages or balloon payments before Dec. 31, 2012, may be able
to refinance their mortgage debt with a 504 loan from the U.S.
Small Business Administration under a new, temporary program
announced today.  

The new refinancing loan is structured like SBAs traditional
504, with borrowers committing at least 10 percent equity and
working with third-party lending institutions and SBA-approved
Certified Development Companies in the standard 50 percent/40
percent split. A key feature of the new program is that it does
not require an expansion of the business in order to qualify.  

SBA will begin accepting refinancing applications on Feb. 28. The
program, authorized under the Small Business Jobs Act, will be in
effect through Sept. 27, 2012.

The economic downturn of recent years and the declining value of
real estate have had a significant, negative impact on many small
businesses with mortgages maturing within the next few years,
said SBA Administrator Karen Mills. As a result, even small
businesses that are performing well and making their payments on
time could face foreclosure because of the difficulties they face
in refinancing and restructuring their mortgage debt. This
temporary program is another tool SBA can provide to help these
small businesses remain viable and protect jobs.

The SBA initially will open the program to businesses with
immediate need due to impending balloon payments before Dec. 31,
2012.  SBA will revisit the program later and may open it to
businesses with balloon payments due after that date or those
that can demonstrate strong need in other ways.  

Borrowers will be able to refinance up to 90 percent of the
current appraised property value or 100 percent of the
outstanding mortgage, whichever is lower, plus eligible
refinancing costs.  Loan proceeds may not be used for other
business expenses. Existing 504 projects and
government-guaranteed loans are not eligible to be refinanced.

ARB What's New

preload