loans_nov2011Five months remain in a unique refinancing opportunity provided by the Small Business Administration (SBA).  Horizon Certified Development Company, a subsidiary of the Hamilton County Development Company, offers loans under the temporary 504 Refinancing Program.

The 504 Refinancing Program is the first time the SBA has offered refinancing. This loan program is set to expire this September.

The refi program is available for business debt that would have originally been eligible for the standard 504 program. Further, the SBA is allowing businesses with equity in their properties to include working capital to pay for other eligible expenses that will come due in the next 18 months, provided the loan-to-value ratio does not exceed 90 percent. Real Estate that is currently financed using SBA programs are ineligible.

The timing of the 504 Refinancing Program comes when traditional loans remain difficult to obtain. Among the requirements are:

  • Businesses must occupy at least 51 percent of the building in which it is located.
  • The company must have been in existence for at least two years.
  • The loan being refinanced must be at least 24 months old (including the latest renewal).
  • The borrower must not have been more than 30 days past due during the last 12 months on the original loan.

The 504 Refinancing Program enables access to locked up equity in real estate for eligible business expenses and to refinance existing debt at historical low interest rates.  However, companies must take advantage of the program soon. If Congress does not extend the program, it is scheduled to expire in September 27, 2012.

To see if your company is eligible, contact Angie Howard at Horizon Certified Development Company at (513) 458-2215 or