SBA Makes Loan Refinancing Easier

While the perks of Section 179 may be greatly reduced in 2012, there’s another benefit for small businesses that is just getting geared up. The SBA has made changes to its 2011 refinancing program that went into effect last month and will be available until around the end of September 2012. This program is a new twist on the existing 504 loan program that was designed to help businesses expand.

Now, small businesses may be able to refinance commercial mortgages and other fixed assets to free up capital without demonstrating that the funds will be used for expansion. Instead, business owners can use the refinancing for other purposes such as locking in a better loan agreement or preventing layoffs/hiring new employees. Due to changes in eligibility rules and other changes, a wider range of businesses may be able to use these loans and maximize the amount of working capital they can access. For more details, see the SBA’s fact sheet.

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