We’ve heard good things come in three’s: for the small business finance industry, we’d like to think these are our recent capital raise announcement, our recent nationwide lending and nationwide FastTrack504 announcement, and now THIS announcement:
Our EVP of Business Development, Steve Ellsworth, is attending the NADCO Spring Summit and has reported some great news… the SBA has finally announced it will start processing files under the Permanent 504 Refinance Program on June 24th.
Fountainhead is on standby ready to assist you with any eligible commercial refinance deals you need help closing!
The following are the highlights of the new program:
1. The new rules will be published this Wednesday at the Federal Registry and the SBA will begin processing applications this June 24th. That’s just over one month from now, so it’s really time NOW to start sending in opportunities for us to review.
2. The commercial mortgage/deed of trust debt to be refinanced must be at least 2 years old.
3. The loan (or loans – can be more than one eligible loan) being refinanced must not have any late payments in the previous 12 months and evidence of such must be presented.
4. The subject property must be a minimum 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. Cash-out refinancing is permitted to cover eligible business operating expenses, although there are more restrictions (contact us and we can discuss the specifics).
7. Unfortunately, existing “government backed” loans, such as 504’s, 7(a)’s or USDA loans, CANNOT be refinanced under this new program. So this is ONLY applicable to conventionally financed commercial mortgages/deeds of trust.
8. Any first lien refinance loan done through Fountainhead will be eligible for our FastTrack504 program’s premiums (of course… this assumes you’re signed up as a FastTrack504 Partner). Might want to do that right away!
Those are the high points that we know at this time. But instead of attempting to detail ALL the new rules and regulations in a blog post, just contact us today so we can discuss how Fountainhead can assist you, your clients or those you know, in refinancing commercial real estate using our very beneficial below-market, long-term fixed-rate financing with high LTV (up to 90%) terms in our SBA 504 program.
Any owner-occupied, conventionally financed loan you or someone you know may have made over two years ago, probably needs reviewed for applicability to the new 504 refi program.
p.s. We look forward to speaking with you about this exciting new refinancing option for commercial real estate. Contact Us Today!