On Thursday, June 13, Senators Mary Landrieu (D-LA) and James Risch (R-ID), Chairwoman and Ranking Member of the Senate Committee on Small Business, respectively, held a markup hearing of S.289, the “Commercial Real Estate and Economic Development (CREED) Act of 2013.” This bill, introduced in February, would temporarily (for five years) allow commercial real estate projects to be eligible for the Small Business Administration’s (SBA) 504/CDC refinance program. By expanding the types of projects eligible for the SBA 504/CDC refinance program, the CREED Act will alleviate some of the pressure from the nearly $1.3 trillion of commercial real estate loans with balloon mortgages that will mature between 2013 and 2016, by allowing small businesses to refinance certain owner-occupied commercial buildings. It will also provide more time for private capital to return to the market and help prevent commercial financing from becoming a drag on economic recovery.
NAR strongly supports timely passage of the CREED Act, and is encouraged by the diligent work being done by the Senate Committee on Small Business and Entrepreneurship. Enclosed is a link to NAR’s letter thanking Senators Landrieu and Risch for their work on this critical legislation.