The SBA 504 loan is useful for many different business development jobs, from investing in new buildings to purchasing equipment. What you might not know is that there's also a way to refinance debt through a program officially made permanent last year.
In a May 27 press statement, the organization announced that the program would take effect less than a month later, with businesses able to address their back loans as they finance for the future. Originally a temporary measure as part of an act from seven years ago, the new loan also allows the SBA to spend as much as $7.5 billion every year due to its recent authorization.
SBA Administrator Maria Contreras-Sweet, expected to relinquish her role to Linda McMahon later this year, said at the time that the refinancing program made her proud, as a former small business owner herself.
"As a Certified Development Company, Growth Capital can help small businesses accomplish their funding goals."
"The 504 loan program with its long term fixed-rate can help refinance debt from adjustable rate loans with significant savings to borrowers," Contreras-Sweet said. "Paying off existing loans with a new loan at a lower cost can help increase cash flow, which can be especially helpful in a resurgent economy," she added.
Even after the new SBA head takes her post, business owners can use some of the same SBA loan resources to manage existing debt. As a Certified Development Company, Growth Capital can officially help small businesses handle the loans that let them accomplish their goals.
If you have qualified debt and meet the eligibility requirements, which this guide explains, you may be able to obtain the funding you need to ensure fewer financial burdens on your company in the near future. Contact us today for more information on creative financing and related services. You can also sign up for our mailing list here.