A refinancing program was launched by the Unite States Small Business Administration, which could help small businesses refinanced owner-occupied commercial properties. The SBA’s loan program is said to help small business to expand—those businesses that are not expanding. The loan program — the 504 program will start on February 28, 2011.
The underserved market is also getting streamlined loan program from the SBA, not just the small business owners. The Small Loan Advantage program is offering an efficient application process for loans not more than $250,000.
Eligible small business owners who can avail for the loan program are those facing huge balloon payments and mortgage maturity before the 31st of December 2012.
According to a press release made by the Small Business Administration, the loan program will provide small companies the opportunity to secure a long-term and stable finance, as well as saving and protecting jobs.
Small business owner who gets the loan will work with certified commercial financial institution and development companies, and must kick in about 10 percent of the total equity to qualify for the loan.
The program works like the standard 504 loan program — the third party will just lend 50 percent of the total amount, and SBA will lend the remaining 40 percent — about $5 million maximum.
SBA’s loan program is created to cover for lending or financial institution for the small business sector. The U.S congress allotted about $15 billion for the refinancing program, through the 504 program.
The applicant’s property will be appraised to update records on their existing loans. Applications for the loan program for small business will be processed on February 28, 2011, Monday until September 27, 2012.