SBA Expands Temporary Refinance Program
Beginning April 4, 2011, the U.S. Small Business Administration (SBA) will expand its temporary 504 commercial real estate refinance program to assist more small business owners struggling to refinance commercial loans. This new refinancing option was initially restricted to small businesses with commercial real estate mortgages maturing by the end of 2012, but now small businesses will be allowed to refinance certain owner-occupied commercial real estate loans maturing after Dec. 31, 2012.
The 504 refinance program provides an SBA loan for up to 40 percent of the appraised property value with no less than 10 percent of the remaining amount to be contributed by the borrower. Last September, President Obama signed into law the Small Business Jobs and Credit Act of 2010, which authorized this program through Sept. 27, 2012.