Closing Date Erased for New SBA 504 Refinancing

Small businesses have eagerly responded to the U.S. Small Business Administration’s new 504 loan refinancing program, designed for mortgages that mature by December 31, 2012.

The response has been so positive, in fact, that as of April 6 the SBA removed the 2012 maturity date as a qualifying factor for the program. Small business owners are now invited to apply regardless of their mortgage maturity date.

Don’t we all wish our new programs would get such immediate response?

Dozens of South Sound business owners have applied for the SBA’s new 504 refinancing program. I field questions every day from people who could save thousands of dollars a month through the refinancing program.

The SBA recognized the program’s popularity, too, and decided to lift the date limitation to help more businesses refinance their owner-occupied buildings. Now businesses can avoid foreclosure on mortgages that were based on inflated real estate values before and during the recession.

SBA 504 loans are a cooperative effort, combining a minimum of 10 percent equity from the business owner, 50 percent from a third-party lender and up to 40 percent from an SBA-approved Certified Development Company.

SBA Administrator Karen Mills said dropping the maturity date requirement allows eligible businesses to “free up capital that will be essential to keeping their doors open and also their future ability to grow and create jobs.”

Helping small businesses is a focal point for the Harborstone loan services team this year. In fact, we’re working on some exciting new loan products that could really benefit some South Sound businesses. Watch for an announcement soon.

Get smart on SBA loans

You’re now just a few computer clicks away from an array of SBA loan resources. We have launched a new website specific to the new SBA 504 refinancing program. If you like videos, check out our YouTube activity. And for more detailed information, read more blogs like this one.

How can we help?

If you would like to discuss your potential eligibility or learn more about the SBA 504 refinancing program, the Harborstone lending officers are ready to help. Please call us at 253-365-6587 or send me an email at Janie.Sacco@harborstone.com.