Refi or no Refi, that is the question.
Within the next week we should have a pretty good idea whether there’ll be a permanent SBA 504 Refinance program so keep your fingers crossed. A permanent 504 Refinance program would give small businesses a powerful tool to restructure debt and gain access to equity currently “trapped” in their facilities to be used for business growth. Congress will hopefully do the right thing for small business and authorize this important, no-cost-to-the-taxpayer program!
In the meantime make sure you take advantage of continuing historic low, fixed-rate SBA 504 financing to secure your future facility needs. Rates will rise as the economy improves so don’t get talked into a variable rate or one that adjusts every few years. You may regret it later. The SBA 504 loan provides a great rate fixed for 20 years, which eliminates that risk and typically provides for 90% financing.
Yes, 2014 should be the time to get off the fence and make things happen for your small business.