Pub. 2 2023 Issue 4

SBA 504 LOAN REFINANCE PROGRAM An Empowering Tool for Small Businesses Amid Rising Interest Rates and Economic Uncertainty By Chris Meyers Chief Executive Officer, B:Side Capital ICBC Associate Member In the face of mounting economic challenges and fluctuating interest rates, small businesses are on the hunt for reliable financial tools. The Small Business Administration’s (SBA) 504 Loan Refinance Program stands out as an impressive solution for owner-occupied commercial real estate. This program delivers more than just immediate financial relief; it offers a sustainable path forward for our local businesses and, by extension, for the bankers who serve them. At the heart of the SBA 504 Loan Refinance Program are three pivotal benefits that small businesses find enticing: 1. Competitive Interest Rates: Rather than succumbing to the often-high interest rates, adjustable rates, or balloon/demand features of traditional commercial real estate loans, this program offers competitive, fixed rates, potentially saving businesses thousands in interest over the loan’s lifespan. 2. Extended Repayment Terms: The pressures of monthly repayments can be a significant burden for businesses. By offering lengthened repayment terms of up to 25 years, the SBA 504 Loan Refinance Program ensures payments are more manageable. 3. Access to Capital: Whether it’s for expansion, rent replacement or capitalizing on growth opportunities, the SBA 504 Loan Refinance Program can unlock additional capital, empowering businesses to stay competitive and grow. But this program doesn’t only benefit businesses. For the banking community, the SBA 504 Loan Refinance Program is an opportunity to enhance our portfolio, boost our financial returns and deepen our commitment to local businesses. Here’s how: • Expanding Customer Base: The program’s inclusivity opens doors to a broader range of customers, compared to traditional commercial real estate loans, allowing them to serve a more diverse group of businesses. • Enhancing Financial Returns: While it offers lower interest rates for borrowers, the SBA 504 Loan Refinance Program 34 | INDEPENDENT REPORT

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