RATES as low as

10-Year Fixed 4.514%

20-Year Fixed 4.668%

EMAIL UPDATES
SBA ANNOUNCES ENHANCEMENTS TO SBA 504 DEBT REFINANCING PROGRAM
November 18, 2016
SBA published Notice 5000-1939 that provides further guidance on program requirements specific to the 504 Debt Refinancing Program. The changes listed in this notice are effective as of November 17, 2016.

SBA Policy Notice 5000-1939 changes and clarifies 504 Debt Refinancing Program requirements originally provided on May 26, 2016 in SBA Policy Notice 5000-1382: Reauthorization of 504 Debt Refinancing Program.

Highlighted changes:
(1) Loan-to-Value Limitation for the Financing of “Business Operating Expenses” increased from 75% LTV to 85% LTV.


(2) Appraisals allowed to be dated within one year of 504 loan approval instead of 6 months.

(3) Option to use Interim Loan or Escrow Account for same institution debt.

For additional information on these enhancements, or to see if a project qualifies for a debt refinance loan, please contact a loan officer.

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504 Debt Refinance Program becomes effective on June 24, 2016!

The SBA has finalized regulations for the SBA 504 Debt Refinancing Program and we are ready to provide access to the program as soon as the new applications are accepted.


Please join us at one of our
504 Debt Refinance Lender Training Sessions

Wednesday, June 15, 2016

Morning Session:  10-11am
Afternoon Session:  2-3pm

Both sessions will take place at
Twin Cities-Metro CDC
3495 Vadnais Center Drive
Vadnais Heights, MN 55110

RSVP to a free training session by email (info@tcmcdc.com)
or call 651.481.8081
(Please indicate your preference for the morning or afternoon session)
 
If you have questions on a specific transaction, or would like to request
onsite training at your lending institution, please contact a TCM Loan Officer
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The Latest

504 Debt Refinance Program Update - April, 2016

Although details of the program have not yet been released, we are expecting a June, 2016 roll-out of the program. The TCM staff was very successful in delivery of the program when it was released as a two-year temporary program, and we are excited to have the opportunity to provide this product on a permanent basis. Please sign up for our email updates to be notified of the exact release date of this program as well as monthly rate updates and other program changes.

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504 Debt Refinance Program Passed Into Law on December 18,2015

It's official, the SBA 504 Debt Refinancing Program will be made permanent. Congress has added a few restrictions, so SBA will be carefully analyzing these changes before issuing new regulations and making the program live. SBA has said it will take AT LEAST 4-6 months to be able to restart this new version of the refinance program. Stay Tuned to TCM for more details!
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SBA 504 Loan Fees have been reduced for loans approved on or after October 1, 2015.
The upfront SBA Guarantee Fee of 0.5% has been eliminated and the ongoing SBA Guarantee Fee has been reduced slightly from 0.9375% to 0.914%.
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The SBA announced the publishing of final rules which will provide greater access to the SBA 504 loan program. Of particular mention are the following changes which became effective on April 21,2014:

Elimination of the Personal Resource Test - The SBA will no longer disqualify a borrower or require an additional equity injection based on excess personal liquidity formulas.

Elimination of the 9-Month Rule - This change will allow financing of expenses toward a project regardless of when the costs were incurred, so long as they are directly attributable to an eligible 504 project.

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Some progress was being made to bring back the Temporary SBA 504 Loan Program, as U.S. Senator Mary L. Landrieu, D-La., Chair of the Senate Committee on Small Business and Entrepreneurship, and Senator Jeanne Shaheen, D-N.H., a senior member of the Committee, introduced legislation that would extend for five years a provision allowing small business owners to use Small Business Administration (SBA) 504 loans to refinance certain existing commercial mortgages. (3-13-2013)
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SBA 504 Refinancing Program (expired on 9/27/2012) 

It's over... for now anyway.

The standalone SBA 504 Refinancing Program, which was originally approved for two years as a part of the Small Business Jobs Act has reached it's sunset date of September 27, 2012. This temporary program allowed the SBA 504 Loan, for the first time ever, to be used for the refinancing of eligible conventional commercial loans.

This temporary program got off to a slow start in year one due to initial regulations that made the program overly restrictive, but after some much needed changes demand grew significantly, and thousands of small business owners took advantage of this window of opportunity to capitalize on the many benefits of the 504 loan program.

Due to growing demand for this program coupled with the September 27, 2012 sunset date, the SBA was inundated with more than a 1000 applications during the final month. It is estimated that 400 small business loan requests with a value of about $500 million, were unable to secure financing as a result of this deluge.  While the SBA did what they could to process as many loans as possible during the final few weeks, staff capacity and legislative imposed regulations, led to this unfortunate conclusion.

There is a strong push for congress to renew the program, so we will continue to monitor this effort and provide updates here, and through our "EMAIL UPDATES".

If you are a Small Business Owner or Commercial Lender with an interest in seeing this program renewed, please sign up for our email updates or send us an email here.



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