Growth Capital can help small businesses benefit from the new Small Business Administration refinancing program and make operating easier. While economic conditions may have shifted in recent years, businesses still need to review their possible options for existing commercial mortgages. What makes the SBA-504 Refinance program doubly beneficial is its potential advantages for both recipients and lenders.
Business owners get a fixed lower interest rate and support from the bank while only having to put forth a 10 percent down payment. In turn, they will have less immediate debt to worry about and a better chance of qualifying for the loans they need. They can also refinance more than one commercial loan.
At the same time, lenders get improved bank production with the 504 program and can maintain a low risk, since they only have to provide 50 percent of the loan. This also gives banks the opportunity to realize new fee income.
Does your business qualify for this loan refinancing program?However, the program does come with limitations that apply to the pre-existing loan. It needs to have existed for at least 24 months, with 85 percent or more of it eligible for the purposes of a 504 loan. To successfully refinance a loan, business applicants also need to present evidence that they’ve made consistent payments on time for 12 months.
Finally, the refinancing program doesn’t apply to many common types of loans, which could be confusing for businesses that don’t know what their options are. To take full advantage of this program, business owners need to work with a firm that understands their position.
Contact Growth Capital to see if you are eligible for this program. We proudly support Ohio small business loans and will help applicants manage their existing assets to the best effect.