The Michigan Certified Development Corporation is offering information on SBA 504.

SBA 504 Refinancing

 

The SBA has just released the long awaited guidelines for refinancing of traditional bank debt with the SBA 504 loan program.    Key points are below:  

·         Loans to be refinanced must mature before
       December 31, 2012   

·         The Third Party loan and the 504 loan combined

       may not be more than 90% of the fair market value of the fixed assets
       securing the loan

·         If assets appraise sufficiently, the borrower can utilize existing equity
       in the asset refinanced

·         Loans refinanced must have been used for a 504 eligible purpose
       (real estate and/or equipment)

·         Loans must fund within 6 months of approval, so timing of due diligence
       (appraisals and environmental) will be critical

·         The loan refinanced cannot already be enrolled in any federal
       guaranty program

·         Debt may be refinanced even if it does not meet the job creation or other
      objectives of the program as long as the amount financed is equal or less 
       than the product of the number of fte's multiplied by $65,000

 

View the attached fact sheet for more information or visit the MCDC website. 

 

 

The MCDC is expecting very strong demand for this new product.  MCDC will be conducting an online training session soon.  Stay tuned for those details.  Please Contact your MCDC loan officer for any potential projects.