Friday, February 25, 2011 New SBA Loan Program for Maturing Mortgages
Small businesses maturing commercial mortgages or balloon payments before Dec. 31, 2012, may be able to refinance their mortgage debt with a Small Business Administration (SBA) loan through a new program that begins Monday, February 28. The program, authorized under the Small Business Jobs Act, will be in effect through Sept. 27, 2012.
The new loan program is structured similarly to a traditional SBA 504 loan, which is offered to businesses that want to expand. Borrowers will be able to refinance up to 90 percent of the current appraised property value or 100 percent of the outstanding mortgage, whichever is lower, plus eligible refinancing costs. No expansion of the business is required.
I could not find any information about the new loan on the SBA website, perhaps because the program does not start until February 28th. But any business which is interested in this new loan program should contract Carolyn Welch at the Connecticut Community Investment Corporation, (203) 776-6172 Ext. 132 or cwelch@ctcic.org. CTCIC, located in Hamden, is one of the organizations in Connecticut which administers SBA loans. I have worked with Carolyn on several transactions and my clients have been very pleased with her work. Tuesday, December 01, 2009 Increase in Filing Fees at the Connecticut Secretary of StateEffective October 1, 2009 there has been a significant increase in filing fees at the Connecticut Secretary of State for business and UCC filings. For example, the fee for filing a UCC-1 Financing Statement is now $50 (previously $25), and the fee for filing Articles of Organization for a limited liability company is now $120 (previously $60). The fee increase has not been very well publicized. Monday, May 12, 2008 Limited liability companies: The entity of choice for Connecticut businesses. There is no question that limited liability companies (LLCs) have become the dominant vehicle for new businesses being formed in the State of Connecticut. In fact, in 2006 formation of new LLCs outnumbered corporations by six to one! LLCs have become extremely popular because they combine the major advantages of two other types of entities: the limited liability of corporations and the pass-through tax treatment of partnerships. Limited liability companies are easy to set up and maintain, and very flexible in structure. There is virtually no limit on the different types of ownership and management structures that can be established. LLCs also benefit from pass-through tax status, meaning that there is no tax at the entity level and all income and loss is reported on the owner’s tax return. As a result, income tax filings are much simpler. LLCs with only one owner do not have to file a separate tax return for the LLC, but instead report everything on Schedule C of their personal tax returns.
Since its introduction in 1993 the LLC has also become the entity of choice for real estate ownership and development. The low cost and flexibility of the LLC allows real owners to set up a new company for each property, and even for separate parcels within the same development. This allows the owner to protect his or her personal assets from liabilities associated with the real estate business. And it has the added advantage of insulating each property or project from liabilities associated with other projects or properties.
Limited liability companies can now be set up with one member, two members, or many members. The ownership can be as simple or as complicated as complex as the parties desire to structure it. There is virtually no limit on the different types of ownership structures. The management of the LLC can also be set up in a variety of ways. There can be one person in charge of the business, or all of the owners can be involved, or anything in between.
There are still some situations in which the use of a corporation or other entity may be preferable to a limited liability company. And although setting up a LLC requires fewer documents and formalities than a corporation, there are still key documents that need to be prepared and executed. For this reason it is important to consult with an experienced attorney before setting up any new business, including a real estate business. |