A new SBA refinancing program for commercial real estate has caught the interest of Harborstone Credit Union.
The $730 million cooperative in Lakewood, Wash. is participating in the SBA’s latest program–launched Feb. 17–that will allow small businesses facing maturity of commercial mortgages or balloon payments before Dec. 31, 2012, to refinance their mortgage debt with a 504 loan.
The new refinancing loan is structured like SBA’s traditional 504, with borrowers committing at least 10% equity and working with third-party lending institutions and SBA-approved certified development companies in the standard 50% / 40% split, according to the agency. A key feature of the new program is that it does not require an expansion of the business in order to qualify, the agency said.
Harborstone has grown with businesses in South Puget Sound for more than 50 years, said Janie Sacco, Harborstone’s SBA specialist. More than 1,500 local businesses are likely candidates for the new program, she added.
“We are pleased to bring this refinancing option to local business owners,” Sacco said. “And if this new 504 refinancing program doesn’t meet their needs, we will explore alternatives that would be a good fit.”
The SBA began accepting refinancing applications Feb. 28. The program, authorized under the Small Business Jobs Act, will be in effect through Sept. 27, 2012.