TAPPING INTO SBA REFINANCING Lower Rates, More Opportunities By JESSICA STUTZ, Lending Director, B:Side Capital Helping borrowers secure lower interest rates on their owner-occupied commercial real estate isn’t just good business — it’s a game-changer for their financial health and your lending portfolio. The SBA 504 refinance programs empower you to provide clients with long-term, fixed-rate solutions while generating new lending opportunities. It’s a win-win for everyone involved. What is the SBA 504 Refinance Program? The SBA 504 refinance options are part of the U.S. Small Business Administration’s 504 loan program, designed to assist small businesses with fixed-rate financing for major fixed assets. The two refinance programs, 504 Refinance and 504 Refinance with Expansion, allow owners to refinance existing commercial real estate loans and realize improved cash flow as a result. Key Benefits 1. Low Interest Rates: The 504 program offers long-term fixed interest rates, typically lower than conventional loans. 2. Cash-Out Option: Borrowers can refinance eligible commercial real estate debt and get cash out for business expenses such as payroll and utilities, pay off a business line of credit or credit card, and refinance other eligible debts secured by the commercial property. 3. Extended Terms: With terms up to 25 years, monthly payments become more manageable, improving cash flow. NEBRASKA INDEPENDENT BANKER 25
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