Small business owners who face daunting balloon payments on commercial real estate mortgages are now able to secure more stable, long-term, fixed-rate financing through the U.S. Small Business Administration’s 504 Loan Refinancing Program.

The program makes it possible for small business owners to refinance debt at lower interest rates and realize increased cash flow for their business.

With property values at their lowest level in decades, you may lack sufficient equity in the building you purchased to qualify for a conventional refinance.  The SBA-504 Refinance program gives you a viable alternative, financing up to 90% of the current appraised property value or 100% of the outstanding principal balance, whichever is less, over a 20-year term.

Key eligibility criteria:

• The original use of funds must have been to purchase/acquire commercial real estate.
• The loan you want to refinance must be at least 2 years old.  Payments must be current with no delinquencies or deferments in the last 12 months.
• Your business must occupy at least 51% of the building you’re currently financing.

To inquire about getting prequalified for a 504 Refi Loan, contact a CDC Loan Expert in your community.  Or call 800-611-5170.