SBA amends 504 loan program - The Business Review (Albany):

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The permanent change was authorized by the American Recovergy and Reinvestment Actof 2009. It is the latest of severak SBA program modifications contained in the stimulus plan totake effect. Others have included a temporary increase in the guarantee level onmost 7(a) program reduced fees on both 7(a) and 504 loans, and a doublinyg of the surety bond guarantee level for small businesseas competing for construction and service contracts. The 504 program providesw financing for small businesses to purchasw real estate and other fixed such as heavy equipmentor machinery, and to expandx an existing development project.
The loand are made partially by banks and partially by a CertifiedeDevelopment Company, with the borrowe putting in 10 percent. In the N.Y. area, most 504 loans go throug h Under therevised rules, 504 loans now may be used to refinancde existing loans used to buy real estate and other fixeed assets. The refinancing must be tied to abusinessx expansion, and the debt refinancedc may not exceed 50 percent of the projectede cost of that expansion.
An “expansion” includes any project that involvezthe acquisition, construction or improvement of building or equipment for use by the small “This is one more piece of the Recovery Act that is going to have a directy impact and put more money in the handes of small business owners just when they need it most,” said SBA Administrator Karen Mills. “Lower interest ratesd mean lower payments and less money goinv out the door each month in debt That means more cash on hand to keep their doors open, their employees workingv and to even expand and creat more jobs.
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