SBA extends loan program through end of 2012

4/6/2011

The U.S. Small Business Administration is giving small business owners more options when it comes to refinancing their commercial loans through a deadline extension of its 504 loan program, the Bryan Ellis Real Estate Letter reports.

The loan program was previously set to expire at the end of September 2012. However, business owners now have the option to refinance loans expiring after December 31, 2012. The program enables entrepreneurs to refinance up to 100 percent of their outstanding mortgages or 90 percent of their appraised property value.

Many small business owners have benefited from the 504 loan program, as these loans provide competitive interest rates and payment predictability. They also limit liability and maximize tax benefits for entrepreneurs.

"The SBA program allowed us to get additional space and conserve our capital to use for growth," David Jensen, owner of a biomedical equipment firm, told the source.

Small business owners should always be on the lookout for ways to conserve their capital. This will help them survive any future financial crises.