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SBA Lifts Closing Date on Refinancing Program

April 12, 2011 By Ben Sclair

Lakewood, WA – The U.S. Small Business Administration’s new 504 refinancing program could help even more people – the mortgage maturity date is no longer a qualifying factor, reports Janie Sacco, Harborstone Credit Union’s vice president for business lending and SBA specialist.

The SBA program introduced in February was designed to help owner-occupied businesses refinance their mortgages with maturity dates before December 31, 2012. The SBA lifted the maturity date requirement as of April 6.

“I field questions every day from small business owners who could save thousands of dollars a month through the refinancing program,” Sacco said. “This will open the door to many more South Sound businesses that can use the refinancing to avoid foreclosure and make plans for growth.”

The SBA removed the maturity date requirement because of the broad interest in the new 504 refinancing program across the country.

SBA 504 loans are a cooperative effort, combining a minimum of 10 percent equity from the business owner, 50 percent from a third-party lender and up to 40 percent from an SBA-approved Certified Development Company.
Helping small businesses is a focal point for the Harborstone loan services team this year. New products and programs are scheduled to be introduced this spring, Sacco said.

To help business owners learn more about the 504 refinancing program, Harborstone recently launched a new website, www.hculoan.com, YouTube videos and a blog. Sacco and her team also can be reached by phone at 253-365-6587.

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