SBA loan program opens to refinancing - South Florida Business Journal:

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Previously, small-business owners could use that program only to make new purchasese of real estate orcapital equipment, such as The changes come as part of the federal government’zs $787 billion stimulus package, formally known as the American Recovery and Reinvestmenty Act of 2009. “This is one more piecee of the Recovery Act that is going to have a directy impact and put more money in the handzof small-business owners just when they need it SBA Administrator Karen Mills says. The change to the 504 loan progra m follows an expansion ofthe SBA’as 7(a) program, which provides loan guarantees.
The SBA now guarantee s 90 percentof 7(a) loans and has increased borrowingb limits. The agency also recentlyg launcheda bridge-loan program called ARC The debt being refinanced was incurredr to acquire land, to construct a buildinhg or to purchase The assets acquired must be eligibled for financing under the 504 program. The existintg debt is collateralized by fixed The existing debt was incurred for the benefit of thesmall business. The new financing provided a substantial benefit to the borrowert whenprepayment penalties, financing fees, and otherd financing costs are taken into account.
The borrower has been currenf on all payments of existing debt for one year priotr to the dateof refinancing. For more informatio n go to www.sba.gov/recovery.