Commercial Mortgage Refinance ...Help Available To Small Business Owners

- Guest Post by Regina King

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The Small Business Administration (SBA) helps the small business entrepreneurs to cater capital for real estate. The Congress has approved $15-billion to provide assistance to the small business owners. The small business owners can opt for SBA program if they are keen to refinance their commercial mortgage. The 504 refinancing program for mortgage has been modified by the SBA. The long term fund for these owners will be based on the qualification of the eligibility criteria.

According to the SBA Administrator Karen Mills, the small business owners are unable to refinance after the colossal collapse of the real estate bubble as a result of the overblown real estate values. Therefore, the small business owners who required immediate help have been provided with the assistance of SBA’s temporary 504 refinancing program.

This program opens a scope to reorganize their debts as well as get access to capital for future development and growth.

Eligibility and qualification criteria:

1. Make sure that your business completes more than 2 years 2. This is applicable for owner-occupied real estate 3. The original loan is required to be 2 years old 4. Remember that the loan proceeds depend on 504-eligible business expenses 5. Make sure that you do not default on your payment

3 mandatory features of SBA’s 504 loan program:

• Lien for 50% of the project expenses will be required • An SBA Certified Development Company holding another mortgage that needs to carry a 100% SBA guarantee for at least 40% to the total value of the property. • A small business entrepreneur required at least 10% equity

A business owner who has qualified for this program is eligible to refinance up to 90% of the appraised property or near about 100% of the outstanding mortgage especially the one that is lower.

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