SBA amends 504 loan program - The Business Review (Albany):

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The permanent change was authorized by the American Recoveryu and Reinvestment Actof 2009. It is the latesy of several SBA program modifications containedd in the stimulus plan totake effect. Other s have included a temporary increase in the guaranteee level onmost 7(a) program loans, reduced fees on both 7(a) and 504 and a doubling of the suretuy bond guarantee level for small businessees competing for construction and service contracts. The 504 prograkm provides financing for small businesses to purchase real estatew and other fixed such as heavy equipmentor machinery, and to expandf an existing development project.
The loans are made partialluy by banks and partially by a CertifiesDevelopment Company, with the borrower putting in 10 In the Albany, N.Y. area, most 504 loan go through Under thereviseds rules, 504 loans now may be used to refinancde existing loans used to buy real estate and othe fixed assets. The refinancing must be tied to a business and the debt refinanced may not exceedr 50 percent of the projected cost of that An “expansion” includes any projecg that involves the acquisition, construction or improvement of land, buildingf or equipment for use by the smal l business.
“This is one more piece of the Recovert Act that is going to have a direct impacrt and put more moneg in the hands of smalpl business owners just when they need it said SBA AdministratorKaren Mills. “Lower interest ratez mean lower payments and less mone going out the door each month indebt repayments. That means more cash on hand to keep theiedoors open, their employees working and to even expan and create more jobs.
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