SBA 504 Lending and Small Business News: August 2, 2016

Business owners with a conventional commercial property mortgage should make sure to take advantage of the low fixed rates on government guaranteed loans offered through the SBA 504 refinancing program. In an article for the Entrepreneur Magazine, Alex Cohen, CEO of Liberty SBF, highlights important information about the SBA 504 program. This information includes its ability to refinance up to 90 percent loan-to-value, or 75 percent on cash-out loans, a requirement to be current on payments for at least one year, and the opportunity for some CMBS loans to be refinanced. Cohen especially highlights how important it is to work with a lender with experience in this field as well.

The Regional Development Company (the RDC) recently shined a light on its 504 loan program at this month’s luncheon hosted by the Greater La Porte Chamber of Commerce. The RDC presented on the advantages of a 504 loan – the opportunity for a low 10 percent down payment, a low, fixed interest rate, and long-term amortization. Furthermore, RDC Executive Director, Erica Dombey, highlighted the speed and ease of applying for an SBA loans, clarifying some misconceptions. Turnaround time from application to SBA approval is approximately 10 to 17 days, which allows small business owners to have access to funds faster than ever before.

The U.S SBA is on pace to surpass 2015 loan totals in New Jersey this year, reaching a record loan amount of $611 million for the first three quarters of the 2016 fiscal year. This represents an increase of 7.3 percent in loan approvals and a 12 percent increase in dollar volume over last year’s totals according to the Cape May County Herald. SBA New Jersey Director Al Titone is quoted as saying, “There is no question that we are on pace to approve more loans and dollars to small businesses across the state than we did in all of fiscal year 2015.” Furthermore, Titone adds that these loan approvals have “helped to create 5,209 new jobs throughout the state and helped retain an additional 6,869 jobs.”

8+1 (That’s 9) Things You Need To Know

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  3. Startups are bringing low-cost 401(k)s to small businesses
  4. Small businesses scramble to cover bills as consumers take their time to pay their charges
  5. 10 self-storage development projects underway in Colorado
  6. Most small business owners are happy staying small
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  9. SBA tours East Main Street businesses in Chafee County, Colorado