If you're a small business owner with a commercial real estate loan maturing in the next couple of years, you might be able to secure more stable, long-term refinancing through the U.S. Small Business Administration. For some businesses, it may be the difference between keeping your location, moving or shutting down.
In early April the SBA expanded its temporary 504 commercial real estate refinance program to assist more small business owners struggling to refinance commercial loans. Initially, it was intended for small businesses with commercial real estate mortgages maturing by the end of 2012, but now small businesses will be allowed to refinance certain owner-occupied commercial real estate loans maturing after Dec. 31, 2012.
The refinance program provides an SBA loan for up to 40 percent of the appraised property value with no less than 10 percent of the remaining amount to be contributed by the borrower. Last September, President Obama signed into law the Small Business Jobs and Credit Act of 2010, which authorized the program through Sept. 27, 2012.
You can read more about the loan extension on the SBA website.
