A Small Business Administration commercial real estate mortgagerefinancing program has expanded access to loans maturing after theagency's initial cutoff point.
|Small business owners with eligible CRE mortgages maturing afterDec. 31, 2012, will be able to secure financing through the SBA'stemporary 504 refinancing program. In February, the SBA said only loans scheduled to mature beforeDec. 31, 2012, were eligible. With the new date change, the agencysaid more small businesses may avoid potential foreclosure onmortgages approved before and during the recession that were basedon inflated real estate values.
|To be eligible for the temporary 504 refinancing program, abusiness must have been in operation for at least two years, thedebt to be refinanced must be for owner-occupied real estate andhave been incurred no less than two years prior to the date ofapplication, and the proceeds used for 504-eligible businessexpenses and payments on that debt must be current for the last 12months.
|Under the Small Business Jobs Act of 2010, Congress authorizedthe SBA to approve up to $15 billion in loans under this program,which amounts to $7.5 billion in both fiscal years 2011 and 2012.The program is expected to benefit as many as 20,000 businesses,the agency said.
|The $730 million Harborstone Credit Union in Lakewood, Wash. was among the firstfinancial institutions to sign on to the CRE refinancingprogram.
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