The Small Business Administration (SBA) has published the final rule for SBA 504 Debt Refinancing without expansion under the 504 program. The final rule is effective TODAY, June 6, 2018. With the final rule published, there are positive modifications to the program:
- The interim rule specified that the qualified debt that is being refinanced must be 2 years old, however the final rule has added that this “2 year old debt may include modifications or refinances within this 2 year period if it was for a maturity date extension.”
- The interim rule stated that the borrower needs to have been current on payments for the last year prior to application. Additionally, the final rule states that if there was a note modification or refinance done to extend the maturity date within 1 year of application, the borrower need to have been current on payments due during the 1 year period. Both before and after the modification or refinancing; there are no deferments of any payments during the 1 year period.
- The final rule clarified that on a refinance of qualified debt for a special purpose property, 15% borrower contribution is needed. However, the Third Party Lender does not have to be at least 50% of total project costs.
- The final rule extended the SBA 504 Loan disbursement deadline to 9 months and SBA may approve an additional 6 months for good cause.
- The final rule codifies that the cash out for eligible business expenses cannot exceed 20% of value of the 504 Eligible Fixed Assets securing the qualified debt and maximum loan to value is 85%.
Now’s the time to secure long term fixed rates for your small business customers!
Give your MBFC Loan Officer a call today!
Grant Awarded to IEDC of Grand Rapids
Minnesota Business Finance Corporation (MBFC) presented an Economic Development grant to Itasca Economic Development Corporation (IEDC) based out of Grand Rapids, MN. Terry Stein, Vice President of MBFC, was on hand to deliver the check to Mark Zimmerman, President & CEO of IEDC at a recent forum held in Northern Minnesota. Commercial lenders, economic development officials, and financial service providers met to review programs and resources offered with partnering organizations.
IEDC continues to focus on expanding the local business community in Grand Rapids area. They also have a Small Business Development Center which supported more than 135 entrepreneurs start, maintain, or expand their business in the last year. Partnering with MBFC, they are able to provide financing options for economic opportunities to all of greater Itasca County. Stein was among several presenters at the 2018 Lender’s Lunch. He spoke regarding the SBA 504 loan program and highlighted benefits of the program in the current business market.
For more information on the many resources and economic development programs offered by IEDC and a link to their website, please click here.
MBFC is proud to offer grant opportunities to foster business development, job creation and retention. For more information about the SBA 504 Loan Program, MBFC Grants, or the VetLoan Advantage Rebate please contact your local Business Development Officer today!
MBFC Grant Awarded to Metropolitan Consortium of Community Developers
Minnesota Business Finance Corporation (MBFC) announces that a grant was presented to Metropolitan Consortium of Community Developers (MCCD) in April on behalf of their request for support for the Open to Business (O2B) program. Mueller met with Roth to present the check at the MCCD’s office on Chicago Avenue in Minneapolis, MN.
The O2B program provides business advising services at no cost as well as lending initiatives for small businesses and entrepreneurs.
- In 2017 there was 5,872 hours of direct technical assistance provided to 846 businesses.
- The MCCD lending programs were able to support 58 small business loans totaling over $2.2 Million dollars.
MCCD serves a six county Metro area (Anoka, Carver, Dakota, Hennepin, Scott, and Washington) with special emphasis on entrepreneurs of color and those who are low-income (below 80% of area median income). Roth noted that MCCD aims to expand into Ramsey county some time within 2018. For more information on programs offered by MCCD please click here for their web page. The Star Tribune has praised “MCCD’s lender/adviser programs for stimulating many tiny businesses.”
MBFC is proud to offer grant and rebate programs for Economic, Community Development initiatives, and Veteran Military borrowers. For more information on how your entity can apply and for qualification requirements please contact your local MBFC Business Development Officer today.
SBA Announces 25-Year Debenture!
It is official. We are pleased to announce the availability of a 25 year Debenture for 504 projects that are approved on or after the date of this notice. This is in addition to the 10 and 20 year 504 Loan and Debenture that are currently available in the 504 Loan Program.
In addition, a few specifics-
- Loans approved prior to the notice date may not be extended to the longer term
- Third Party Loans for 25 year debenture must have a term of minimally ten years
- Funding for the 25 year Debenture will happen every month with the first funding anticipated to occur June or July 2018
MBFC is excited to add this 25 year Debenture to our long term fixed asset financing options. Please contact us to discuss your project.
As always, we will earn your business.
Bakers HobbyTown Awarded MBFC’s $3,000 VetLoan Advantage Rebate
MBFC is honored to present Steve and Laura Knutson, Owners of Bakers HobbyTown in Waite Park, MN, our VetLoan Advantage Rebate for $3,000. MBFC is the only CDC in Minnesota to offer a rebate to business owners that are active or retired members of military service.
The Knutsons utilized financing through Sara Draxler-Gainsforth of Bremer Bank, and MBFC for the purchase and expansion of their business. HobbyTown hobby enthusiasts of remote control cars, remote control trains, helicopters, boats, drones, remote control parts, models for all ages, pine wood derby accessories, coin collecting, art supplies, and beer/wine making kits.
Steve enlisted in the Air Force in 1982 and was assigned to Aircraft Control and Warning Station in Hofn, Iceland. During the cold war Soviet aircraft attempted to fly from Russia to Cuba over the Eastern part of the U.S. He also participated in a 310 mile relay run across Iceland! The team consisted of 4 Air Force, 4 Navy, 4 Marines, and one civilian.
Following his time in Iceland, Knutson was assigned to Tactical Control Squadron at Homestead Air Force Base in Florida. He worked on long range radar in support of Mobil Tactical Air Control units. After separating from the Air Force, Knutson used programs to attend college and graduated with a Bachelor’s Degree in Computer Science from UNM.
For more information about the VetLoan Advantage Rebate, offered exclusively through MBFC, please contact us below.