Refinancing program to assist Delaware small businesses

10/25/2011

The Delaware Community Development Center Corporation and Lancaster, Pennsylvania-based Fulton Bank recently approved an SBA loan program that's similar to a 504 loan, the Cecil Whig reports.

Working with the SBA, the entities developed a guaranteed commercial real estate refinancing loan in Delaware that lets companies refinance their existing mortgage into a fixed-rate, 20-year program within the SBA's 504 initiative.

"The 504 refinance loan program permits small businesses to lock in long-term, stable financing and improve cash flow," SBA regional administrator John Shoraka told the news source. "In many cases, this creates funding to preserve or create jobs."

SBA district director Jayne Armstrong points out the difference between the refinancing program and a traditional 504 program is that small businesses will be allowed access to a 504 loan without having to expand or add a new building.

Chad Moore, owner of the Admiral Hotel in Rehoboth Beach, boasts that the program will help him keep at least 25 employees on staff and possibly create 10 new jobs.

The SBA's website reports that the final rules for the refinancing program were placed in effect on October 12, and will expire on September 27, 2012.