WASHINGTON, May 26, 2016 /PRNewswire-USNewswire/ -- The U.S. Small Business Administration (SBA) released regulations today for the much-anticipated refinancing program for the administration's 504 commercial property and equipment loan program and will begin accepting applications on June 24, 2016.
The release of these regulations– only five months after the legislation reinstating the program permanently was passed – represents clearing the final hurdle to get the program up and running.
SBA Administrator Maria Contreras-Sweet announced the move in front of SBA 504 industry leaders Monday during a conference organized by the National Association of Development Companies (NADCO) saying, "We are on target to take 504 refi applications in June."
Congress originally established the program on a temporary basis from 2010 to 2012. However, after it reached its sunset date, the expiring refinancing option left 400 small businesses still awaiting service yet unable to use the program. Four years later, the program is now expected to attract small businesses that seek 504 refinancing interest savings that can be reinvested into their businesses.
"I would like offer my sincere thanks to SBA for all of its hard work in expediting the release of these regulations. Now, the debt refinancing program can help small businesses in need of refinance even sooner! It was a treat for our members to learn about the release of the regulations from the Administrator herself, during her keynote speech at the NADCO Spring Summit," said Barbara A. Vohryzek, president and CEO of NADCO.
Vohryzek testified last May in front of the House Small Business Committee in support of the legislation that Congress passed in December.
The National Association of Development Companies is the trade association of SBA lenders including Certified Development Companies (CDCs), nonprofit companies certified by the SBA to provide small businesses financing under the SBA 504 Program. NADCO represents nearly 240 CDCs, serving all 50 states. In 2015, the industry helped support national economic development and job creation by providing $4.34 billion to nearly 5,600 U.S. small businesses.
SOURCE National Association of Development Companies (NADCO)