VALPARAISO – The Regional Development Company (RDC), headquartered in Valparaiso, Ind., announced on Thursday that the U.S. Small Business Administration (SBA) has released the new debt refinance rules that are much like the final incarnation of the temporary debt refinance rules from the 2009 Jobs Act, which include:
* Business must have been in existence for two years
* Loan must be seasoned for two years
* Property must be 51% owner occupied (no investment or residential property)
* Loan must have originally been used to purchase or improve commercial real estate
* Loan must have been current (under 30 days past due) for the past 12 months
* Loan must be conventionally bank financed (7a loans, USDA loans and SBA 504 1st and second mortgages are NOT eligible)
* Borrower can access up to 90% of the current appraised value of the property
* Borrower can get cash out for any eligible business purposes, including business term debt, business lines of credit, business credit cards, working capital, inventory, accounts payable, purchase of equipment, improvement of property and more
“Business owners can access the equity inherent in their commercial real estate to lower their monthly payments,” said Erica Dombey, President and Executive Director of the Regional Development Company. “We can refinance commercial real estate debt up to 90% of the value of the property. This advance rate is much higher than the 75-80% a traditional bank would allow.”
“We can advance up to 75% of their owner occupied property to pay off other debt, purchase equipment, make improvements to the property or any number of business related issues,” Dombey added. “Most banks will not allow any cash out in refinance situations. As an added bonus, the borrower locks in a low, 20-year fixed rate for the RDC loan.”
For more information about the Regional Development Company or the U.S. SBA 504 Loan Program, please call the Regional Development Company at 219-476.0504 or visit www.rdc504.org.
