Small Business SBA 504 Loan Program Changes; Loans and Refinancing at Low Interest Rates to Stimulate Economic Recovery
Posted on | August 1, 2010 | No Comments
Small businesses are struggling along with the majority in the U.S. economy. The Senate recently voted down a stimulus bill that would have increased small business lending in an attempt to support economic recovery. The bill is stalled and the small business owner looks for alternative ways to stay afloat in the current stagnant waters of the economic recovery. Changes to SBA loan program could allow businesses to refinance existing debt thus opening room for job creation.
Interest rates are historically low and refinancing is becoming an increasingly popular option among small business owners. Recent changes to the SBA loan program will allow small businesses seeking to expand the option to refinance existing loans used to purchase real estate and other fixed assets as a result of the modifications made to the U.S. Small Business Administration’s 504 Certified Development Company loan program. These specific changes were part of the changes authorized in the American recovery and Reinvestment Act of 2009. The object with this allowance is to help small business open access to increased lines of cash flow to be utilized as a way to further invest in the business by possible adding additional employees. The hope is that this will have a domino effect and result in many more small businesses doing the same and provide more Americans with employment opportunities. Ultimately, the Recovery Act provisions are actions taken to increase access to capital for small businesses in an overall hope that our nation’s recovery will move in the desired positive direction. For more information on recovery details for small businesses the government website details recovery initiatives.
Author: Genny Germano