The National Association of Development Companies (NADCO) is the trade association for the Nation’s 270 Certified Development Companies (CDCs). The SBA certified CDCs make financing available to Small Business Owners through the SBA 504 loan program. The CDCs plans to bring in an extension of a SBA “504” loan refinancing program.
Small Businesses having outstanding commercial loans are eligible for the refinancing program. Now, the extended 504 program will allow them to refinance up-to 90% of appraised value of available capital. SBA received feedback that 8,000 businesses may become eligible to participate under this refinancing program. In this current fiscal, SBA guaranteed financing is estimated to be $7.5 billion. The total project financing is expected to range up-to $17 billion. The recent interest rate has been capped at 4.91% for refinanced SBA 504 loans.
NADCO members are going to hold discussions with Senators about advantages that 504 refinance loan program has for the nation and the senators’ states. Excess equity can now be used for obtaining working capital in case of small business owners. Entrepreneurs can easily secure long-term, fixed-rate, and low-interest finances. The fund can then be used for business expansion, creation of new jobs, help consumers with finances, and also save on capital.
SBA 504 loan program helped 130,000 businesses obtain SBA 504 loans in past 25 years. Also, $50 billion in debentures got released that led to $100 billion in small business financing projects. The refinancing program has already become a success story as it helps to keep and create jobs and also boost small businesses.
This article was submitted by Raj Tulshan, Director of Business Development of Biz2Credit. Biz2Credit is a small business marketplace that connects entrepreneurs with financing options and advice to grow their business. Send all questions to firstname.lastname@example.org