Grant Awarded to UMD Center for Economic Development
Wednesday, February 3, 2016 Terry Stein, Vice President of Minnesota Business Finance Corporation (MBFC) presented a grant for $1500 to Elaine Hansen, Director of UMD Center for Economic Development.
The UMD Center for Economic Development is located at 11 E Superior St. Ste 210, in Duluth, Minn. They provide professional consulting for Business Owners throughout all of Northeastern Minnesota. In addition to consulting they also host a variety of training seminars and educational workshops to enhance and strengthen existing businesses and Entrepreneurs.
To learn more click on the following link to their website: UMDCED
SBA 504 DEBT REFI APPROVED BY CONGRESS!
After years of advocating on Capitol Hill by commercial real estate industry leaders, the SBA 504 Loan Refinancing Program has been permanently reinstated more than three years after it expired in 2012. Also known as the Commercial Real Estate and Economic Development (CREED) Act, the program will allow small business owners to refinance eligible business debt into a new loan through the SBA 504 program.
Since the current SBA 504 program only allows for acquisition loans, this will dramatically increase the number of loans that can be funded under the SBA 504 program for many banks and third party lenders. One of the many key benefits of the SBA 504 program is that it is a fixed rate loan.
Some background: The SBA 504 Loan Refinancing Program (aka Commercial Real Estate and Economic Development (CREED) Act) was originally enacted as part of the Small Business Jobs Act of 2010. It expired in 2012 but in that time it was responsible for refinancing $5 billion of debt for U.S. small business owners at no cost to taxpayers, according to figures released by the National Association of Development Companies (NADCO), a trade association of SBA lenders and Certified Development Companies (CDCs).
How did this happen? The provision was placed into the omnibus bill that will fund the government for the rest of FY 2016. In a summary of the bill by the U.S. House Appropriations Committee it says that the agreement “…includes a provision to reauthorize the 504 refinance program at $7.5 billion to help business owners refinance their commercial mortgages…”
NADCO released a statement on Wednesday morning about the bill. “Congress has added a few additional caveats on debt refi in exchange for its return,” the statement said. “The program can only be used in years that both standard 504 and the refi program are at zero subsidy. Additionally, a CDC’s 504 portfolio, by dollars, must be at least 50% standard 504 loans. Refi loans cannot make up a majority of the portfolio. A waiver provision exists if SBA sees good cause for additional refi loans to be made.”
SBA has said that it will take up to six months before the refinance program can be restarted.
As additional information becomes available, we will pass it along as quickly as possible. Feel free to give your MBFC Business Development Officer a call to discuss details!
On Friday, December 4, Tom Saehr, President & CEO of Minnesota Business Finance Corporation (MBFC) presented a check for a grant to Carol Anderson, Executive Director of Community Development of Morrison County (CDMC, Little Falls, Minn.).
CDMC helps find ways for business and industry to grow in the surrounding communities. They provide assistance with financing, training, government support, and business real estate support services for companies.
To learn more about CDMC click on the following link to their website:CDC.MORRISON.MN
MBFC LENDER OF THE YEAR: BankVista, Sartell, MN
Minnesota Business Finance Corporation (MBFC) is pleased to announce that the FY2015 MBFC Lender of The Year Award was given to BankVista at the FY2015 MBFC Annual Meeting. MBFC’s Third Party Lender of the Year Award is given to the Lender with the highest dollar amount of 504 debentures approved by MBFC and the U.S. Small Business Administration (SBA) within the fiscal year.
MBFC MEMBER OF THE YEAR: Gordon Winzenburg, CMG Finance
Gordon Winzenburg has been selected as MBFC’s FY2015 Member of the Year. Winzenburg is the President of CMG Finance located in Brainerd, MN. He referred MBFC the most business of any Member in the fiscal year. He has been a longstanding MBFC Member and is currently an MBFC Board Member.