Published: Monday, May 7, 2012 at 7:37 a.m.
Summary: The U.S. Small Business Administration's temporary 504 refinancing program will come to a screeching halt Sept. 27. Unless Congress extends the deadline, small businesses with owner-occupied commercial properties might be less able to pay off balloon mortgages coming due. Others will miss the opportunity to lock in current rates below 5 percent.
Key Quotes: Lower property values along with tighter credit are a double whammy for business owners trying to refinance. But under the 504 refinancing program, borrowers can get up to 90 percent of value. What is more, most transaction costs and qualified working capital, projected for the next 12 months, may be included.
The maximum loan amount is around $9 million to $10 million, depending on the type of property and how much risk the first mortgage lender is willing to take. The approximate minimum is $250,000.
Read the full article at: Commercial real estate refinancing is expiring.
A. Joseph Marshall
Coldwell Banker Commercial
Commercial Real Estate Advisor
Savannah, Ga
Summary: The U.S. Small Business Administration's temporary 504 refinancing program will come to a screeching halt Sept. 27. Unless Congress extends the deadline, small businesses with owner-occupied commercial properties might be less able to pay off balloon mortgages coming due. Others will miss the opportunity to lock in current rates below 5 percent.
Key Quotes: Lower property values along with tighter credit are a double whammy for business owners trying to refinance. But under the 504 refinancing program, borrowers can get up to 90 percent of value. What is more, most transaction costs and qualified working capital, projected for the next 12 months, may be included.
The maximum loan amount is around $9 million to $10 million, depending on the type of property and how much risk the first mortgage lender is willing to take. The approximate minimum is $250,000.
Read the full article at: Commercial real estate refinancing is expiring.
A. Joseph Marshall
Coldwell Banker Commercial
Commercial Real Estate Advisor
Savannah, Ga
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