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 firstname.lastname@example.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.