SBA 504 Refinance is Here!
MBFC President & CEO, Tom Saehr, is attending the NADCO Spring Summit being held in Washington D.C. and has reported some great news! The U.S. Small Business Administration (SBA) has announced it will start processing applications under the Permanent 504 Refinance Program on June 24th!
Highlights of the program are as follows:
- The new rules will be published Wednesday, May 25th, 2016 at the Federal Registry and the SBA will begin processing applications on June 24th.2. The commercial debt to be refinanced must be fixed asset debt and at least 2 year old.
3. The loan or loans being refinanced must not have any late payment history in the previous twelve months and evidence of such must be presented.
4. The subject property must be a minimum of 51% Owner Occupied and meet all other eligibility requirements of the SBA 504 program.
5. For Refinance-Only projects, the maximum LTV is 90%.
6. CASH OUT REFINANCING IS PERMITTED to cover eligible business operating expenses. There are some restrictions (contact MBFC for details).
7. Existing government financed loans such as 504, 7(a), and USDA loans cannot be refinanced under this new program. The refinance is only applicable to conventionally financed commercial debt.
These are the highlights released at this time, stay tuned for additional SBA 504 Refinance information from MBFC.
Watch for details of MBFC LENDER TRAINING coming soon to a location near you!
Now is the time to contact your MBFC Business Development Officer for additional details!