The United States Small Business Administration (SBA) has extended its 504 loan program, which enables small business owners to refinance commercial real estate loans that are due to mature after December 31, 2012. The move is aimed at avoiding foreclosures, which have spiked in the commercial real estate markets since the associated turmoil in residential housing. The 504 program is now in effect though Sept. 27, 2012.
SBA Administrator Karen Mills, explains, “With the collapse of the real estate bubble, many small business owners have found themselves unable to refinance as a result of inflated real estate values at the time they took out their mortgage.”
During the 2011 and 2012 fiscal years, the SBA will be able to use the program’s funds to support up to 20,000 businesses with nearly $15 billion in loans. Borrowers will be able to refinance up to 90 percent of the current appraised value of their property, or 100 percent of the outstanding mortgage, whichever is lower. Certain refinancing costs will apply.
See Also:
About the 504 Loan Program
Home Financing
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