In the News
May 25, 2016
SBA Releases 504 Refinancing Rules
Based on the SBA 504 related provisions in the 2016 Omnibus Budget Bill passed by Congress and signed into law in December of 2015, the SBA today published regulations which are essentially the rules by which 504 refinancing will operate. This is a terrific development and the SBA met its goal of having the regulations issued before June 1st. The main aspects of the new program are as follows:
- The legislation and new rules make this program permanent provided the program continues to operate at no cost to the taxpayers, as it has in the past.
- To be eligible for refinancing the loans must be for owner-occupied business properties just like regular 504 program loans.
- Loans eligible for refinancing must have been in existence for at least the last two years and must have been current for at least the last 12 months as of the date of loan application.
- To be eligible, the applicant-company must have had no ownership changes in the last 2 yrs.
- Each refinancing project must meet either the 504 program’s existing job creation and retention goals, or alternatively meet at least one of the public policy or community development goals of the program, just like the regular 504 program.
- Like the successful pilot 504 refinancing program that operated in 2012, the program will allow proceeds to be used for business expenses, done in conjunction with eligible business mortgage refinancing.
- The maximum loan-to-value on the refinancing-only projects is 90%. For refinancing projects with proceeds for business expenses, the maximum loan-to-value is 75%.
- SBA 504 refinancing may only be used to refinance conventional financing. This means that existing SBA loans or other types of federally direct or federally guaranteed financing is not eligible for this program.
- The interest rate on a 504 refinancing will be almost identical to existing 504 rates. Technically, 504 refinance rates will be .044% (about 1/20th%) higher than regular 504 rates.
The reinstatement of 504 refinancing will allow many small and mid-sized companies to exit loans with unfavorable terms and lock in near historic low interest rates. This will save many companies thousands of dollars each month, and these savings can be used help these companies expand and to create and retain significant numbers of local jobs. We congratulate SBA on a job well done on the implementation of this new aspect of SBA 504 financing.
Please contact our staff anytime you have questions about 504 financing or for a quick, no cost prequalification on an SBA 504 commercial real estate or equipment loan, because at Bay Area Development Company, your small business is a very big deal to us.
- Local Wholesaler Gets Visit From Congressman, Government Officials
- Wagstaff Worldwide Public Relations Named SBA’s Los Angeles District Women in Business Champion of the Year
- Bear Republic Brewing Co. named U.S. Small Business Administration Northern California 2015 Small Business of the Year
- Rep. Mike Thompson Announces $1 Million SBA Business Loan For VJB Vineyard & Cellars
June 4, 2014, Washington D.C.
Twitter joins SBA in Honoring Iron Construction, Northern California Small Business of the Year
May 12, 2014 Walnut Creek, CA
“Bay Area Development Company’s client, Iron Construction, was honored today during an innovative live tweet event that took place at Twitter’s headquarters in San Francisco.”
- Congratulations to our client, Iron Construction, for being named SBA Northern California’s Small Business of the Year!
Click here to read the full release.
- La Tortilla Factory Honored by SBA
May 5, 2011 Walnut Creek, CA
“Bay Area Development Company announces that its clients, Carlos and Willie Tamayo of La Tortilla Factory in Santa Rosa, have been named the SBA’s Small Business Persons of the Year for Northern California.”
- Local Steel Company Nearly Quadruples in Size
November 6, 2010
“Bay Area Development Company announces that it has completed 504 funding for Diverse Acquisition Company in Antioch.”
- Local SBA Lender Continues Small Business Leadership Role
May 15, 2010
“For 2010-2011 the National Association of Development Companies known as NADCO, has re-elected its Vice President of Legislative Affairs; James Baird, CEO of Bay Area Development Company in Walnut Creek, CA. Mr. Baird has held the position since 2006.”
- Local Executive Receives Small Business Honors
July 29, 2008
“Small Business California, an advocacy organization that promotes the well being of California small businesses, has named Jim Baird, CEO of Bay Area Development Company, one of just eight “Small Business Heroes.”
- Local Executive Helps Stimulus Bill Bring Some Relief to Main Street
February 23, 2009
“President Obama’s economic stimulus bill includes much needed relief for small businesses, thanks in part to the voluntary efforts of one local SBA lender.”
- Local SBA Lender Expands, Announces New VP
January 31, 2008
“Bay Area Development Company, one of the Northern California’s largest SBA 504 lenders, announces the opening of a Fresno office and the appointment of Cal Cain as its Vice President and Branch Manager…”
Please take a look at our annual report to see how our clients and strategic partners have helped us accomplish great things for our communities.
- 2015 Annual Report
“Creating and Sustaining Small Business Jobs”
- 2009 Annual Report
“Tough Times. Tougher Companies.”
- 2012 Economic Development Report
Monthly Rates Delivered To You Instantly
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