MBFC’s 504 Refinance Training was a Success!
Minnesota Business Finance Corporation (MBFC) recently hosted 10 SBA 504 Refinance Training sessions throughout Minnesota. There were 250 of the State’s top Lenders, Economic Developers, Business and Government Officials in attendance. This was a great success and we thank the lending industry leaders, who provide financing resources for our small business owners, for learning more about the SBA 504 Refi program.
The SBA 504 Refi Program is off to a fast start with applications being accepted as of June 24, 2016. MBFC already has several SBA 504 Refi loan approvals and have been closing them just as quick! The SBA 504 interest rate environment is very attractive at 4.14% fixed for 20 years and 4.16% fixed for 10 years. In today’s competitive lending environment, the SBA 504 Refi can be a nice tool for you to use to acquire additional business.
Highlights of the program are as follows:
1.The commercial debt to be refinanced must be fixed asset debt and at least 2 year old.
2. The loan or loans being refinanced must not have any late payment history in the previous twelve months and evidence of such must be presented.
3. CASH OUT REFINANCING IS PERMITTED to cover eligible business operating expenses.
4. The subject property must be a minimum of 51% Owner Occupied and meet all other eligibility requirements of the SBA 504 program.
5. For Refinance-Only projects, the maximum LTV is 90%.
6. The refinance is applicable to conventionally financed commercial debt. Contract for Deed refinances are eligible! Existing government financed loans such as 504, 7(a), and USDA loans cannot be refinanced under this new program.
If you’d like to request a more personalized training session for your staff please contact your MBFC Business Development Officer at 800-593-0123 to schedule.