SBA Expands Program For Loan Refinancing

The U.S. Small Business Administration has opened its temporary refinancing program to more small-business owners with eligible commercial real estate loans.

Small businesses facing maturing loans or balloon payments after Dec. 31, 2012, can now refinance with a 504 loan. The SBA initially offered the refinance option for loans maturing before that date. The change took effect April 6.

Northwest Arkansas business owners who want more information about the loan program can call Bill Horne, with  Six Bridges Capital Corp. in Fayetteville, at (479) 444-8015.

The temporary program was enacted in February under the Small Business Jobs Act of 2010.

The SBA had no way to gauge what demand for the program would be like, said Jay Wisener, executive vice president of Arkansas Capital Corp. Group of Little Rock. The agency chose Dec. 31, 2012, as a rather restrictive date to help determine what the need for the loans would be.

“The response they got was that the restriction limited the loans to too few people,” he said. “So SBA just eliminated the restriction. If businesses meet the requirements in the program, they have an opportunity until Sept. 27, 2012, to refinance owner-occupied commercial loans.”