Borrowers face deadline for Small Business Administration program
- June 6, 2012
A Small Business Administration program that has allowed many businesses to refinance their commercial loans is due to expire in September.
The McLean-based National Association of Development Companies (NADCO) says that about 130,000 U.S, small businesses have received more than $45 billion in financing through the SBA 504 program during the past 25 years.
NADCO is the trade association for 270 certified development companies (CDCs), nonprofit organizations that finance small businesses through the SBA 504 program.
Small business with non-SBA commercial loans often can refinance them at lower rates through the program, according to NADCO.
However, the association notes, the program is scheduled to expire on Sept. 27.
Under the SBA 540 program, businesses can refinance up to 90 percent of the appraised value of available collateral.
The program aims to help small businesses utilize excess equity to acquire working capital, lock in low-interest financing, expand businesses, consolidate debt and finance eligible business expenses.
According to SBA estimates, about 8,000 small businesses could take part in the program this fiscal year