The SBA 504 loan is back
For small businesses with high-cost loans for office buildings, warehouses or other real estate, a resurrected government program offers potential relief, Forbes reported. The Small Business Administration will begin accepting applications for its 504 refinancing program on June 24. The SBA’s 504 loan program offers small-business owners a way to access cheap capital for real estate and other major capital expenditures. The 504 refinancing program allows refinancing such debt into long-term, fixed-rate loans. The refinance program was part of the Small Business Jobs Act of 2010 to help small businesses get capital at a time when the commercial lending market was frozen. The original 504 program expired in 2012. In December, Congress agreed to resurrect the program and make it permanent. The SBA is authorized to approve up to $7.5 billion in the regular 504 loan program and another $7.5 billion under the 504 debt refinancing program.