March 3, 2010 - Small Business Administration (SBA) 504 loan recipients will benefit from the elimination of most up-front program fees for at least another month, thanks to a move yesterday by the U.S. Senate.
The temporary extension, which expires on March 28, eliminates both the bank participation fee of 0.5% and the certified development company (CDC) processing fee of 1.5%.
This is again great news for small business owners looking to purchase owner-occupied commercial real estate and/or long-life machinery and equipment through the 504 loan program. The fee relief will save borrowers approximately $10,000 in upfront, out-of-pocket costs on a typical loan.
A longer extension is currently in the works in Congress as part of the Jobs Bill, which contains an additional $354 million to extend the program fee eliminations through Sept. 30, 2010. That bill also contains provisions that would increase the cap on 504 loans (SBA portion) to $5 million for standard small businesses and $5.5 million for small manufacturing businesses as well as allow for the refinancing of owner-occupied commercial real estate loans under the 504 program.
If the Jobs Bill does not pass by March 28, lenders can expect the SBA to re-activate its Recovery Act Loan Queue, as it has done twice previously. Once this occurs, loans are placed into the queue awaiting the availability of funds.
According to the SBA, program enhancements thus far have accounted for an additional $18.2 billion in lending to more than 40,000 small businesses with small businesses reporting that the provisions will save or create more than 500,000 jobs.
504 PROGRAM HIGHLIGHTS
* Up to 90% commercial financing.
* Below market, fixed interest rates.
* Long amortization terms (up to 20 years).
* Loans are assumable by qualified, acquiring businesses.
* Projects from $125,000 to $20 million.
* Temporary elimination of most up-front program fees.
ELIGIBLE USE OF 504 PROCEEDS
* Buy land and construct new building.
* Buy land and existing building.
* Remodel, convert, expand or renovate existing building.
* Green initiative projects.
* Purchase of long-life machinery and equipment.
* Associated fees and soft costs
Our underwriters are professionally trained to keep the interest of the professional a priority. They are experienced in working with borrowers of all sizes. Thus, they can fund loans anywhere in the country!
For more information call us TODAY at 863-298-8900 or email us at: loans@commerciallendingpros.com
Click here for a Loan Submission Form
Commercial Capital Ltd.
Tel: 863-298-8900
Fax: 863-877-4456
Email: loans@CommercialLendingPros.com
Website: www.CommercialLendingPros.com
Your #1 Source For Commercial & Business Financing
No comments:
Post a Comment