Great news for small businesses struggling to meet the needs of their mortgages or facing balloon payments. The Small Business Administration (SBA) is launching a new program to help small commercial property owners refinance their mortgages. Starting April 6, 2011, commercial real estate mortgages that mature after December 31, 2012 are eligible to participate in the temporary refinancing program. Businesses will be able to secure more stable, long-term financing through the SBA’s temporary 504 refinancing program.
This program was created through the Small Business Jobs Act of 2010, and is also financed through this legislation. The ultimate goal is to avoid foreclosures for those small businesses with mortgages established during the recession. Businesses must be in operation for at least two years, have owner-occupied real estate and have payments of debt current for the past 12 months in order to be eligible for this program.
For more information about this program, you can read the full press release at the SBA web site.
