Deadline for 504 Debt Refinancing Program is Approaching Fast
While efforts are underway to convince Congress to extend the 504 debt refinancing program beyond the impending Sept. 27, 2012 deadline, there are no guarantees and time is quickly running out.
If you have clients that are good candidates for refinancing their commercial debt, contact us right away so we can get the process started.
While the nation’s economy is slowly but surely recovering from the Great Recession, many businesses are still in a financial bind that makes it difficult for them to grow and create more jobs.
The 504 debt refinancing program offered through Florida First Capital allows small businesses to take advantage of long-term, low fixed interest rate loans to refinance their high interest or maturing real estate debt or existing debt on capital assets.
Borrowers also can use excess equity in the asset being refinanced to finance eligible business expenses to support business operations for a period of 18 months under this temporary program.
The basic requirements for a 504 debt refinancing loan are:
• Up to 90% of the current appraised property value may be refinanced.
• The property must have been acquired at least two years ago with commercial debt.
• The loan must be current and the borrower must not have made any payments more than 30 days after the due date under original or modified bank terms for the past 12 months. Such modifications of terms must have been entered into prior to Oct. 12, 2011.
• The project structure must be based on the current appraised value of the collateral.
• The small business must occupy at a minimum 51% of the property at the time of application.
• Existing government-guaranteed loans are not eligible to be refinanced.
Refinancing of Paid Off 504 Loans
Borrowers who have had 504 projects in the past, paid them off and might have additional debts secured by their fixed assets can also benefit from the temporary 504 debt refinancing program.
If a business has paid off its 504 loan, but still has debt on eligible business assets, it may be a great candidate for the refinancing of that existing debt. With today’s record low 504 interest rates, and access to 20-year financing with virtually no cash down with sufficient equity, this program may help both former 504 borrowers and the lenders that are holding current debts.
With more than 50 refinance projects under our belt, Florida First Capital has led the way among certified development companies in Florida to structure, process and obtain SBA authorizations for 504 debt refinancing loans since the program’s inception.
We are the experts with the proven track record you can trust to get your refinance deals done quickly and efficiently.
Let’s talk refinance before time runs out. If you have clients that are good candidates for refinancing their commercial debt, contact us today.
For more information about SBA 504 loans in Florida, contact Florida First Capital by visiting www.ffcfc.com, emailing at email@example.com or calling 888.320.5504.