SBA’s 504 Refi Program is Back!

The U.S. Congress voted to reinstate the Commercial Real Estate and Economic Development (CREED) Act as part of its passage of the year-end omnibus spending bill for FY 2016. This action dramatically increases the number of fixed-rate loans that can be funded through SBA’s 504 loan program by earmarking $7.5 billion to help small businesses refinance eligible business debt. This loan program will be available starting in summer 2016 through Texas Certified Development Company (TxCDC).

“We are excited that TxCDC will again be able to help business owners leverage their fixed assets to provide cash for expansion, development and growth,” said TxCDC President Suzanna Caballero. “TxCDC eagerly awaits the SBA’s guidance on implementing the program and then working with Texas business owners to build their future. In 2012 we helped 12 businesses refinance debt on their buildings and finance working capital for inventory, new employees and improvements on their equipment and property. We were inspired by these business owners who have invested years of hard work building their companies.”

This refinance program existed for 16 months between 2011 and 2012, during which more than 2,300 small business owners to refinance $5 billion in debt. The program was “sunset” in 2012, leaving 400 businesses still in the loan approval pipeline. “Debt refi is a fantastic tool to help CDCs in their economic development work,” said Claire O’Rourke, vice president of governmental relations at the National Association of Development Companies.

Congress’s action will help small business owners restructure their finances so they can focus on growing their businesses and hire additional employees to support the growth. This action was a result of bipartisan cooperation between Rep. Steve Chabot (R-OH), Rep. Nydia M. Velazquez (D-NY), Sen. David Vittner (R-LA) and Sen. Jeanne Shaheen (D-NH).

Learn more about how small business owner Eddie Wilson used this type of loan to grow his business in 2012 here.

Stay tuned for more details but in the meantime, if you want more information about this reinstated loan program, please contact TxCDC at 512-433-1175 or 800-486-8620 or contact Caballero at