Small Business Administration loan refi up to 90 percent of a property’s value
Small businesses can save some real money these days. To take advantage of low-interest rates, they only refinance their mortgages. A temporary federal program is only designed to help small firms. Small Business Administration (SBA) loan to refi up to 90 percent of a property’s value by allowing them to use a type of federally guaranteed. The potential savings of the two-year program are enticing. It is under the SBA’s 504 loan program
A Tucson-based online store for triathletes, Trisports.com, took advantage of the program with knocked nearly 4 percent off the interest rate on a $3 million mortgage. Seton Claggett, who co-owns Trisports.com, said “It’s millions.” The idea behind the program was to boost jobs by allowing qualified small businesses to cut their mortgage costs. It mandated under the Small Business Jobs Act passed by Congress in September 2010. It has produced anemic results since the SBA launched the program under regulations initially adopted in February.
Through the end of 2012, Congress allocated up to $15 billion for the refi program. It is including about $7.5 billion through the just-ended 2011 federal fiscal year. It is also in an effort that it was supposed to help up to 20,000 businesses. , the SBA said only 265 refi loans totaling $212 million had been processed through Sept. 23.