SBA 504 Lending and Small Business News: July 6, 2016
The new, permanent version of the U.S SBA’s 504 refinancing program is similar to its temporary predecessor, with a few changes. These changes include the opportunity to take part of a loan out in cash with a maximum LTV of 75%, a limit on refinancing up to half of a lender’s total dollar amount in purchase SBA 504 loans from the previous year, an overall lending limit of $3.25 billion, and a new rule stating that the refinancing program can only be offered in years when it and the regular 504 program don’t require tax dollars to break even. The SBA has asked the public for suggestions on how to improve this program and will take comments through July 25th.
The SBA Main Street Tour will run from July 4th to July 8th, with stops throughout the Delta Region in states such as Arkansas, Tennessee, Mississippi, and Louisiana. SBA Administrator Maria Contreras-Sweet stated that the SBA launched the tour to make sure small businesses throughout the region knew that the SBA is continuously ready to support them through access to capital, counseling, federal contracting, and even disaster assistance. Throughout the bus tour Contreras-Sweet plans on conducting Main Street walking tours, meeting with local small businesses, and meeting with local Chambers of Commerce and other city officials.
Entrepreneurs still have a mixed outlook on the impact of the Brexit on small businesses and startups. Because of the unprecedented nature of the event, Jonathan Todd, an economist at NerdWallet, worries that business investment in the U.S could fall and thus limit economic growth. This issue is further compounded for small businesses that work with others companies overseas, where the impact of the decision can be felt even greater. However others are still optimistic about the change. Sara Holoubek, CEO and founder of Luminary Labs, believes that small businesses have the ability to adapt much faster than major corporations, and thus stand the most to gain.
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