The SBA loan program, specifically the 504 extension, is reminding owners that refinancing to pay down existing business debts should still be considered an option.
Recently, commercial real estate rates in the U.S. began to improve, according to a study by Realtors. The data showed more transactions in 2011 than previous years with lower rates for businesses. This means owners with commercial real estate loans may be seeing better terms on upcoming refinancing applications if they choose to pursue them.
If they want instead to look at SBA loan programs, these still allow business owners to use the funds to improve their current debt situation and credit ratings. There are specific requirements and restrictions, and these 504 loans are somewhat harder to obtain than other traditional loans. However, a Small Business Administration press release encouraged owners to pursue alternative debt funding methods rather than risk mounting interest and unpayable totals.
The SBA recognized two different Certified Development Companies (CDCs) for their work in disseminating information about 504 loans to different small businesses to encourage growth while removing debt burdens in the private sector. As an extension of the National Association of Development Companies (NADCO), CDCs operate at both large- and small-scale to cater to various business needs and specialize in refinancing business loans.
“We are very proud of the contributions [these CDCs] have made through hard work dedicated to their communities,” said NADCO president Chris Crawford. “We’re very proud of … their impact on small businesses whose growth is leading to more jobs across America.”
Businesses looking for either type of loan should try an online marketplace like Boefly to get in touch with a cross-section of viable lenders quickly and easily to increase their chances of approval.