On March 30th we received notification from SPEDCO stating that the SBA has published a Press Release announcing it is lifting the date limitation on the 504 Loan Program temporary refinancing guidelines enacted under the Small Business Jobs Act of 2010 allowing for the refinance of existing eligible non-SBA debt. Initially the Program was restricted to loans maturing no later than December 31, 2012. With publication in the Federal Register, which is expected by April 6, 2011, SBA will begin accepting applications from small business owners with eligible debt maturing after December 31, 2012 for the refinance of the debt using the 504 Loan Program. The temporary refinancing guidelines are in effect through Sept. 27, 2012.
SPEDCO said they have received questions from some lenders based on a misunderstanding of one of the current refinance guidelines and would like to take this opportunity to make a clarification. Existing debt with a federal guarantee (for example 504, 7(a) or USDA) is not eligible to be refinanced using the temporary guidelines. Non-guaranteed conventional debt that meet the guidelines is eligible.
Here is a link to the SBA website for additional information http://www.sba.gov/
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