SomerCor 504 will host a webinar, “SBA 504 Refinancing Program: The Time Is Now,” at 10 a.m. July 27 to bring attention to the opportunities of the Small Business Administration’s refinancing program and its looming close at the end of September.
In a webinar that will last approximately 30-40 minutes, David Frank, president, SomerCor 504 will outline the program parameters, frequently asked questions about the program and the critical dates that are looming for the program.
“This refinancing program, where rates are 3.78 and 4.40 for 10- and 20-year loan refinancings, respectively, is extremely attractive and has been quite popular for small businesses looking to take greater control of their financial situation,” Frank said. “Unfortunately for the small business owner, the program, which started almost two years ago, will end in approximately two months.”
People interested in attending the webinar can register by calling Mary Cummings at SomerCor 504 at 312-360-3322 or emailing her at mcummings@somercor.com.
The program sunsets on Sept. 27, meaning that the refinancing application needs to be approved and the paperwork needs to be completed by the close of that business day. To bring attention to the upcoming end of the program, SomerCor 504 has launched a countdown clock on its website (www.somercor.com) to emphasize that time is running out for companies to take advantage of a refinancing provision with the Small Business Administration’s 504 loan program.
The Somercor 504 Countdown Clock actually is tied to the date when SomerCor estimates companies must have their applications submitted to then work through the approval process.
According to Frank, the two primary criteria to be met for the refinancing program are the loan must be in good standing (paid up; good credit history) and the loan must be at least two years old.
He said the loan proceeds can be used for a variety of different reasons, including to cover any eligible business expense, for working capital, to pay off term debt, to pay off reserves, to hire new employees, and fund other business improvements, among other things.
Frank noted that while there is a possibility the program could be extended, the federal government has yet to act on an extension. “With rates as low as they are, a business really can’t lose by refinancing now versus waiting for Congress to potentially act on extending this provision,” he said.
