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Follow on Google News | SBA 504 Refinancing Program Set to ExpireThe SBA launched a Small Business Jobs Act of 2010, allowing a temporary refinancing program. This program could greatly assist our local business community. The application deadline is scheduled to expire September 27, 2012.
Intracoastal Bank, Lending Center 386.449.0959 mbarr@intracoastalbank.net SBA 504 Refinancing Program Set to Expire Daytona Beach, FL - The Small Business Administration launched a Small Business Jobs Act of 2010, allowing a temporary refinancing program, starting in late 2011. This program could greatly assist our local business community but, the application deadline is scheduled to expire in less than 120 days. Due to recent declines in real estate values, many small businesses may find it difficult to refinance their commercial loans when they come due, even if their payment record is good. "This is why I believe it is critical to our small business community to know about the SBA’s refinance program that will allow up to 90% LTV refinancing of existing debt," says Mark Barr, SVP of Intracoastal Bank. "It can be the solution for a maturing loan or a proactive choice to lower a capital asset payment of an existing loan," Barr adds. However, this loan program’s application period expires on September 27, 2012. Under the SBA 504 Refinancing Program, borrowers can finance up to 90% of the appraised value to include acceptable fixed assets. Typically, conventional commercial financing only allows up to 80% financing. Consequently, this program gives borrowers some latitude with regard to refinancing properties with lower appraised values or to obtain additional funds to pay for eligible businesses expenses. This program’s makeup is similar to the traditional SBA 504 loan program, which does not accommodate refinancing. Small Businesses that want to take advantage of this program will work with their local bank along with an approved SBA Certified Development Company (CDC). The loan structure is typically referred to as a 50/40/10, meaning that the Bank loans 50%, the SBA 504 loan is for 40% and the borrower provides only 10% equity. Except in certain circumstances, the new loan amount cannot exceed the outstanding principal balance of the debt being refinanced. Any existing Federal Guaranty or USDA loan is not eligible for this refinancing program. "Intracoastal Bank has loaned millions of dollars using these programs," says Barr. "It's a great opportunity for the borrower to lower interest rate and loan maturity risk by securing long-term, low fixed rate financing," he adds. Intracoastal Bank, headquartered in Palm Coast, is Flagler County’s only locally owned and operated financial institution. Intracoastal Bank’s main banking center is located at 1290 Palm Coast Parkway, NW, Palm Coast, Florida 32137. The Bank’s Lending Center is located at 1671 N. Clyde Morris Blvd Ste 120, Daytona Beach, FL 32117. The bank serves the Northeast and East Central Florida area. The bank offers a full range of deposit and loan products tailored to meet the needs of customers and the community. The bank is a state charted commercial bank, member FDIC. More corporate information and e-banking are available at www.intracoastalbank.net. End
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