The Small Business Administration has a new way to help financially strapped small businesses refinance certain loans. They have instituted a temporary program that expires September 27, 2012. This new program expands some SBA loans requirements and it maintains the same low SBA loan rates that small business owners have previously held.
This program will allow small businesses who are in the 504 program to refinance some eligible fixed assets with no requirement of expansion. It continues SBA tradition of offering low-rate, long-term fixed financing to small business owners. In addition, it helps protect jobs and may increase hiring of new workers as businesses continue to profit despite poor economic conditions that may have prohibited these businesses from obtaining other refinancing loans.
Qualifications for the SBA 504 refinance programs include eligibility for businesses holding a commercial mortgage for at least two years. It does not include refinancing of government guaranteed loans. Another plus included in this newer refinance program is that the small business does not need to be in an expansion phase. Expenses that may be included are those directly related to normal operation of the business, such as salaries, utility payments, inventory stock and insurance payments.
Small business owners particularly like working with the Small Business Administration to start up or grow their companies because the owners can take advantage of low SBA loan rates. The SBA offers many types of business loans, and this refinancing option can help many businesses obtain help they might otherwise not be able to acquire. SBA loan requirements are crafted to meet the needs of small business owners who need special help with locating funding and loan resources. Financing is essential for business success; underfunded operations are likely to fail, while properly funded companies have a good chance for success.
The SBA was created specifically to assist the development and success of small businesses across the country. There are many local district offices where entrepreneurs and business owners can go to for face-to-face training, consulting and loan information and applications. The website has complete details of all SBA advantages and resources; it is available online 24/7.