New SBA Refinance Program Available to Small Businesses from CDC Small Business Finance

Opportunity to lighten debt burden for thousands of companies

SAN DIEGO--()--Small business owners feeling the pressure of commercial mortgage debt and facing the specter of rising interest rates can soon get relief from a new refinance program launched by the Small Business Administration and CDC Small Business Finance.

“This is great news for small businesses that need financial breathing room to grow and create new jobs,” said Kurt Chilcott, president of CDC Small Business Finance, a leading non-for-profit SBA lender offering the new refinance loans.

Between $100 billion and $200 billion in commercial real estate debt is projected to mature nationwide in 2016 and 2017. Much of this debt is owed by small businesses still struggling in a lukewarm economy.

The new SBA-504 Refinance program reprises a successful pilot initiative that in 2011-2012 helped more than 2,700 small businesses refinance nearly $7 billion in high-interest debt.

“The SBA-504 refinance program came at the right time,” said Walt Carbonell of US Technical Ceramics, in 2012. “We were facing a significant balloon payment with our old loan. The refi offered a fixed rate over 20 years. It gave us more financial flexibility and allowed us to allocate more dollars to initiatives that helped the company grow and create new jobs.”

Under the new refinance program, small businesses can take advantage of lower rates, fixed for 20 years, to lighten their monthly debt payments, improve cash flow and stabilize operations. The current SBA-504 loan rate is 4.31%

If interest rates begin to rise, many small businesses will be challenged to qualify for a conventional refinance loan versus an SBA loan. With the new SBA-504 Refinance loan, a bank and SBA-certified lending partner will provide 90% financing, leaving a 10% down-payment by the small business owner. The bank funds only 50 percent of the total debt, increasing the business owners’ ability to qualify for the loan. Approximately 40% is provided by a nonprofit certified development company like CDC Small Business Finance and backed by the U.S. Small Business Administration.

Small business owners can find out more by visiting SBA-504 Refinance. They can also discuss prequalification with a CDC Small Business Finance loan expert in California or Arizona.

About CDC Small Business Finance:

CDC Small Business Finance is a not-for-profit lender that provides capital to small businesses so they can expand, grow and create jobs in California, Arizona and Nevada. The company specializes in SBA lending, but also offers the Community Advantage loan for working capital, equipment, inventory, tenant improvements and business acquisition. In 38 years, CDC has helped create over 170,000 jobs by leveraging more than $12 billion in loans to over 10,000 small businesses. Visit www.cdcloans.com or call 800.611.5170.

Contacts

CDC Small Business Finance
Larry Nuffer, 619-243-8620
lnuffer@cdcloans.com

Release Summary

Small business owners feeling the pressure of maturing commercial mortgage debt can soon get relief from a new refinance program launched by the SBA.

Contacts

CDC Small Business Finance
Larry Nuffer, 619-243-8620
lnuffer@cdcloans.com